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8-K - FORM 8-K - MEDICAL PROPERTIES TRUST INCd352090d8k.htm
EX-99.1 - EX-99.1 - MEDICAL PROPERTIES TRUST INCd352090dex991.htm

Exhibit 99.2

 

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InvestIng In the future of healthcare.

Medical Properties Trust

FIRST QUARTER 2012

SUPPLEMENTAL INFORMATION


LOGO    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 Three Months Ended March 31, 2012    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, Managing Director - Capital Markets at (205) 397-8897.   

 

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Company Information 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 Of_cers:

Edward K. Aldag, Jr., Chairman, President and Chief Executive Of_cer R. Steven Hamner, Executive Vice President and Chief Financial Of_cer Emmett E. McLean, Executive Vice President, Chief Operating Of_cer, 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


MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES

Reconciliation of Net Income to Funds From Operations

(Unaudited)

 

     For the Three Months Ended  
     March 31, 2012     March 31, 2011  
           (A)  

FFO information:

    

Net income attributable to MPT common stockholders

   $ 10,563,870      $ 10,779,607   

Participating securities’ share in earnings

     (251,867     (315,360
  

 

 

   

 

 

 

Net income, less participating securities’ share in earnings

   $ 10,312,003      $ 10,464,247   

Depreciation and amortization:

    

Continuing operations

     8,746,473        7,570,224   

Discontinued operations

     —          323,032   

Gain on sale of real estate

     —          (5,324
  

 

 

   

 

 

 

Funds from operations

   $ 19,058,476      $ 18,352,179   

Acquisition costs

     3,425,012        2,039,971   
  

 

 

   

 

 

 

Normalized funds from operations

   $ 22,483,488      $ 20,392,150   

Share-based compensation

     1,858,456        1,837,709   

Debt costs amortization

     855,382        986,955   

Additional rent received in advance (B)

     (300,000     (300,000

Straight-line rent revenue and other

     (1,733,696     (1,734,673
  

 

 

   

 

 

 

Adjusted funds from operations

   $ 23,163,630      $ 21,182,141   
  

 

 

   

 

 

 

Per diluted share data:

    

Net income, less participating securities’ share in earnings

   $ 0.08      $ 0.09   

Depreciation and amortization:

    

Continuing operations

     0.07        0.08   

Discontinued operations

     —          —     

Gain on sale of real estate

     —          —     
  

 

 

   

 

 

 

Funds from operations

   $ 0.15      $ 0.17   

Acquisition costs

     0.03        0.01   
  

 

 

   

 

 

 

Normalized funds from operations

   $ 0.18      $ 0.18   

Share-based compensation

     0.01        0.02   

Debt costs amortization

     0.01        0.01   

Additional rent received in advance (B)

     —          —     

Straight-line rent revenue and other

     (0.01     (0.02
  

 

 

   

 

 

 

Adjusted funds from operations

   $ 0.19      $ 0.19   
  

 

 

   

 

 

 

 

(A) Financials have been restated to reclass the operating results of certain properties sold in December 2011 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.

Funds from operations, or FFO, represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property and impairment charges on real estate assets, 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) 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.

 

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INVESTMENT AND REVENUE BY ASSET TYPE, OPERATOR AND BY STATE

Investments and Revenue by Asset Type - As of March 31, 2012

 

     Total Invested
Assets
     Percentage
of Total  Assets
    Total
Revenue
     Percentage
of Total Revenue
 

General Acute Care Hospitals

   $ 976,020,839         47.6   $ 24,625,228         56.7

Long-Term Acute Care Hospitals

     506,513,789         24.7     11,584,377         26.7

Medical Office Buildings

     15,795,436         0.8     445,564         1.0

Rehabilitation Hospitals

     390,958,684         19.1     6,320,753         14.6

Wellness Centers

     15,624,817         0.8     415,342         1.0

Net other assets

     143,549,115         7.0     —           —     
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     $2,048,462,680         100.0     $43,391,264         100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

Investments and Revenue by Operator - As of March 31, 2012

 

     Total Invested
Assets
     Percentage
of Total Assets
    Total
Revenue
     Percentage
of Total Revenue
 

Prime Healthcare

   $ 410,124,577         20.0   $ 11,303,017         26.1

Ernest Health, Inc.

     394,155,889         19.2     3,916,692         9.0

IJKG/HUMC

     126,401,836         6.2     3,786,993         8.7

Vibra Healthcare

     126,263,245         6.2     4,125,830         9.5

Kindred Healthcare

     83,434,567         4.1     2,122,789         4.9

16 other operators

     764,533,451         37.3     18,135,943         41.8

Net other assets

     143,549,115         7.0     —           —     
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     $2,048,462,680         100.0     $43,391,264         100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

Investment and Revenue by State - As of March 31, 2012

 

     Total Invested
Assets
     Percentage
of Total Assets
    Total
Revenue
     Percentage
of Total Revenue
 

Texas

   $ 491,756,664         24.0   $ 10,686,098         24.7

California

     435,235,077         21.2     12,159,855         28.0

New Jersey

     126,401,831         6.2     3,786,993         8.7

Arizona

     92,671,712         4.5     1,302,209         3.0

Idaho

     85,699,794         4.2     1,829,400         4.2

19 other states

     673,148,487         32.9     13,626,709         31.4

Net other assets

     143,549,115         7.0     —           —     
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     $2,048,462,680         100.0     $43,391,264         100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

 

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LEASE MATURITY SCHEDULE - AS OF MARCH 31, 2012

 

Total portfolio (1)

   Total leases      Base rent (2)      Percent of total
base rent
 

2012

     3       $ 2,810,220         1.9

2013

     —           —           0.0

2014

     2         4,811,508         3.3

2015

     2         4,039,476         2.8

2016

     1         2,250,000         1.6

2017

     1         1,800,000         1.2

2018

     6         13,224,354         9.1

2019

     8         10,151,490         7.0

2020

     1         1,039,728         0.7

2021

     9         26,477,174         18.3

Thereafter

     35         78,284,921         54.1
  

 

 

    

 

 

    

 

 

 
     68         $144,888,871         100.0
  

 

 

    

 

 

    

 

 

 

 

(1) Excludes our River Oaks facility, as it is currently under re-development and our Emerus facilities that are 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).

 

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DEBT SUMMARY AS OF MARCH 31, 2012

 

Instrument

   Rate Type    Rate     Balance     2012      2013      2014      2015      2016      Thereafter  

6.875% Notes Due 2021

   Fixed      6.88   $ 450,000,000      $ —         $ —         $ —         $ —         $ —         $ 450,000,000   

6.375% Notes Due 2022

   Fixed      6.38     200,000,000        —           —           —           —           —           200,000,000   

BB&T Revolver

   Variable      N/A        —          —           —           —           —           —           —     

2011 Credit Facility Revolver

   Variable      N/A (1)      —          —           —           —           —           —           —     

2016 Term Loan

   Variable      2.50     100,000,000        —           —           —           —           100,000,000         —     

2016 Unsecured Notes

   Fixed      5.59 % (2)      125,000,000        —           —           —           —           125,000,000         —     

2008 Exchangeable Notes

   Fixed      9.25     11,000,000        —           11,000,000         —           —           —           —     

Northland - Mortgage Capital Term Loan

   Fixed      6.20     14,371,464        173,981         249,384         265,521         282,701         298,582         13,101,295   
       

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
          $900,371,464      $ 173,981       $ 11,249,384       $ 265,521       $ 282,701       $ 225,298,582       $ 663,101,295   
       

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
        Debt Discount        (146,536                 
       

 

 

                  
        $ 900,224,928                    
       

 

 

                  

 

(1) Represents a $400 million unsecured revolving credit facility with spreads over LIBOR ranging from 2.60% to 3.40%.
(2) Represents the weighted-average rate for four traunches of the Notes at March 31, 2012 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 milllion of the Notes and effective October 31, 2011, the Company is paying 5.675% on $60 million of Notes.

 

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MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

 

     March 31, 2012     December 31, 2011  
     (Unaudited)     (A)  

Assets

    

Real estate assets

    

Land, buildings and improvements, and intangible lease assets

   $ 1,274,421,111      $ 1,244,496,384   

Construction in progress and other

     7,951,396        30,902,348   

Net investment in direct financing leases

     200,285,160        —     

Mortgage loans

     265,000,000        165,000,000   
  

 

 

   

 

 

 

Gross investment in real estate assets

     1,747,657,667        1,440,398,732   

Accumulated depreciation and amortization

     (112,484,138     (103,737,665
  

 

 

   

 

 

 

Net investment in real estate assets

     1,635,173,529        1,336,661,067   

Cash and cash equivalents

     126,500,484        102,725,906   

Interest and rent receivable

     33,650,010        29,862,106   

Straight-line rent receivable

     35,493,269        33,993,032   

Other loans

     165,207,294        74,839,459   

Deferred financing costs

     23,603,146        18,285,175   

Other assets

     28,834,948        25,506,974   
  

 

 

   

 

 

 

Total Assets

   $ 2,048,462,680      $ 1,621,873,719   
  

 

 

   

 

 

 

Liabilities and Equity

    

Liabilities

    

Debt, net

   $ 900,224,928      $ 689,848,981   

Accounts payable and accrued expenses

     62,278,099        51,124,723   

Deferred revenue

     22,544,227        23,307,074   

Lease deposits and other obligations to tenants

     28,668,332        28,777,787   
  

 

 

   

 

 

 

Total liabilities

     1,013,715,586        793,058,565   

Equity

    

Preferred stock, $0.001 par value. Authorized 10,000,000shares; no shares outstanding

     —          —     

Common stock, $0.001 par value. Authorized 250,000,000 shares; issued and outstanding - 134,523,921 shares at March 31, 2012 and 110,786,183 shares at December 31, 2011

     134,524        110,786   

Additional paid in capital

     1,277,283,144        1,055,255,776   

Distributions in excess of net income

     (230,676,181     (214,058,258

Accumulated other comprehensive income (loss)

     (11,732,050     (12,230,807

Treasury shares, at cost

     (262,343     (262,343
  

 

 

   

 

 

 

Total Medical Properties Trust, Inc. stockholders’ equity

     1,034,747,094        828,815,154   
  

 

 

   

 

 

 

Non-controlling interests

     —          —     
  

 

 

   

 

 

 

Total Equity

     1,034,747,094        828,815,154   
  

 

 

   

 

 

 

Total Liabilities and Equity

   $ 2,048,462,680      $ 1,621,873,719   
  

 

 

   

 

 

 

 

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

 

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ACQUISITIONS FOR THE THREE MONTHS ENDED MARCH 31, 2012

 

Name

  

Location

  

Property Type

   Investment /Commitment  

Ernest Health, Inc.

   Nine states    Long-term acute care and inpatient rehabiliation    $ 396,500,000   
        

 

 

 

Total Investments / Commitments

      $ 396,500,000   
        

 

 

 

 

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Medical Properties Trust Medical Properties Trust, Inc. 1000 Urban Center Drive, Suite 501 Birmingham, AL 35242 (205) 969-3755 www.medicalpropertiestrust.com Contact: Charles Lambert, Managing Director—Capital Markets (205) 397-8897 or clambert@medicalpropertiestrust.com