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Exhibit 99.2

 

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SECOND QUARTER 2013


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Table of Contents Company Information 1 Reconciliation of Net Income to Funds from Operations2 Investment and Revenue by Asset Type, Operator, and by State 3 Lease Maturity Schedule 4 Debt Summary5 Consolidated Statements of Income 6 Consolidated Balance Sheets 7 Acquisitions and Summary of Development Projects 8 Detail of Other Assets 9 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 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


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, 2013     June 30, 2012     June 30, 2013     June 30, 2012  
           (A)           (A)  

FFO information:

        

Net income attributable to MPT common stockholders

   $ 27,347,826      $ 19,316,269      $ 53,504,318      $ 29,880,139   

Participating securities’ share in earnings

     (179,263     (238,167     (372,325     (490,034
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income, less participating securities’ share in earnings

   $ 27,168,563      $ 19,078,102      $ 53,131,993      $ 29,390,105   

Depreciation and amortization:

        

Continuing operations

     8,717,644        8,337,468        17,261,597        16,518,219   

Discontinued operations

     —          527,121        103,197        1,092,843   

Loss (gain) on sale of real estate

     (2,054,229     1,445,555        (2,054,229     1,445,555   
  

 

 

   

 

 

   

 

 

   

 

 

 

Funds from operations

   $ 33,831,978      $ 29,388,246      $ 68,442,558      $ 48,446,722   

Acquisition costs

     2,087,903        279,258        2,278,452        3,704,270   
  

 

 

   

 

 

   

 

 

   

 

 

 

Normalized funds from operations

   $ 35,919,881      $ 29,667,504      $ 70,721,010      $ 52,150,992   

Share-based compensation

     2,285,050        1,778,253        4,203,905        3,636,709   

Debt costs amortization

     855,417        855,445        1,752,149        1,710,827   

Additional rent received in advance (B)

     (300,000     (300,000     (600,000     (600,000

Straight-line rent revenue and other

     (4,012,026     (2,299,056     (7,904,654     (4,032,752
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted funds from operations

   $ 34,748,322      $ 29,702,146      $ 68,172,410      $ 52,865,776   
  

 

 

   

 

 

   

 

 

   

 

 

 

Per diluted share data:

        

Net income, less participating securities’ share in earnings

   $ 0.18      $ 0.14      $ 0.36      $ 0.23   

Depreciation and amortization:

        

Continuing operations

     0.06        0.07        0.12        0.13   

Discontinued operations

     —          —          —          —     

Loss (gain) on sale of real estate

     (0.02     0.01        (0.01     0.01   
  

 

 

   

 

 

   

 

 

   

 

 

 

Funds from operations

   $ 0.22      $ 0.22      $ 0.47      $ 0.37   

Acquisition costs

     0.02        —          0.01        0.03   
  

 

 

   

 

 

   

 

 

   

 

 

 

Normalized funds from operations

   $ 0.24      $ 0.22      $ 0.48      $ 0.40   

Share-based compensation

     0.02        0.01        0.03        0.03   

Debt costs amortization

     —          0.01        0.01        0.01   

Additional rent received in advance (B)

     —          —          —          —     

Straight-line rent revenue and other

     (0.03     (0.02     (0.05     (0.03
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted funds from operations

   $ 0.23      $ 0.22      $ 0.47      $ 0.41   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(A) Financials have been restated to reclass the operating results of certain properties sold in 2012 and 2013 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.

 

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INVESTMENT AND REVENUE BY ASSET TYPE, OPERATOR AND BY STATE

Investments and Revenue by Asset Type - As of June 30, 2013

 

            Total
Assets
    Percentage
of Gross Assets
    Total
Revenue
     Percentage
of Total  Revenue
 

General Acute Care Hospitals

     A       $ 1,316,916,190        55.0   $ 66,820,210         57.9

Long-Term Acute Care Hospitals

        470,927,384        19.7     26,872,860         23.3

Rehabilitation Hospitals

        409,565,020        17.1     20,920,877         18.1

Wellness Centers

        15,624,817        0.6     830,675         0.7

Other assets

        183,319,403        7.6     —           —     
     

 

 

   

 

 

   

 

 

    

 

 

 

Total gross assets

        2,396,352,814        100.0     

Accumulated depreciation and amortization

        (141,877,101       
     

 

 

        

Total

      $ 2,254,475,713        $ 115,444,622         100.0
     

 

 

     

 

 

    

 

 

 

Investments and Revenue by Operator - As of June 30, 2013

 

     Total
Assets
    Percentage
of Gross Assets
    Total
Revenue
     Percentage
of Total  Revenue
 

Prime Healthcare

   $ 683,629,764        28.5   $ 36,629,634         31.7

Ernest Health, Inc.

     434,054,743        18.1     23,472,549         20.3

IJKG/HUMC

     126,401,831        5.3     8,121,320         7.0

Vibra Healthcare

     86,876,496        3.6     5,503,047         4.8

Kindred Healthcare

     83,434,567        3.5     4,245,612         3.7

19 other operators

     798,636,010        33.3     37,472,460         32.5

Other assets

     183,319,403        7.7     —           —     
  

 

 

   

 

 

   

 

 

    

 

 

 

Total gross assets

     2,396,352,814        100.0     

Accumulated depreciation and amortization

     (141,877,101       
  

 

 

        

Total

   $ 2,254,475,713        $ 115,444,622         100.0
  

 

 

     

 

 

    

 

 

 

Investment and Revenue by State - As of June 30, 2013

 

     Total
Assets
    Percentage
of Gross Assets
    Total
Revenue
     Percentage
of Total  Revenue
 

Texas

   $ 535,223,180        22.3   $ 27,893,212         24.2

California

     522,826,939        21.8     31,357,919         27.2

New Jersey

     126,401,831        5.3     8,121,320         7.0

Kansas

     94,719,558        4.0     1,330,677         1.2

Idaho

     91,296,448        3.8     5,184,691         4.4

20 other states

     842,565,455        35.2     41,556,803         36.0

Other assets

     183,319,403        7.6     —           —     
  

 

 

   

 

 

   

 

 

    

 

 

 

Total gross assets

     2,396,352,814        100.0     

Accumulated depreciation and amortization

     (141,877,101       
  

 

 

        

Total

   $ 2,254,475,713        $ 115,444,622         100.0
  

 

 

     

 

 

    

 

 

 

A Includes two medical office buildings

 

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LEASE MATURITY SCHEDULE - AS OF JUNE 30, 2013

 

Total portfolio (1)

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

2013

     —         $ —           —     

2014

     1         2,112,416         1.3

2015

     2         4,155,412         2.5

2016

     1         2,250,000         1.4

2017

     —           —           —     

2018

     1         1,958,100         1.2

2019

     9         13,088,898         8.0

2020

     1         1,039,728         0.6

2021

     4         12,799,716         7.8

2022

     12         38,548,776         23.4

2023

     3         9,152,292         5.6

2024

     1         2,453,856         1.5

2025

     4         11,228,224         6.8

Thereafter

     32         65,499,242         39.9
  

 

 

    

 

 

    

 

 

 
     71       $ 164,286,660         100.0
  

 

 

    

 

 

    

 

 

 

 

(1) Excludes 5 of our properties that are under development and includes a lease extension that was exercised after June 30, 2013. Also, lease expiration is based on the fixed term of the lease and does not factor in potential renewal options provided for in our leases.
(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 JUNE 30, 2013

 

Instrument

  

Rate Type

   Rate     Balance      2013      2014      2015      2016      2017      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   

2015 Credit Facility Revolver

   Variable      3.05 %(1)      40,000,000         —           —           40,000,000         —           —           —     

2016 Term Loan

   Variable      2.45     100,000,000         —           —           —           100,000,000         —           —     

2016 Unsecured Notes

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

Northland - Mortgage Capital Term Loan

   Fixed      6.20     14,073,531         125,432         265,521         282,701         298,582         320,312         12,780,983   
       

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
        $ 929,073,531       $ 125,432       $ 265,521       $ 40,282,701       $ 225,298,582       $ 320,312       $ 662,780,983   
       

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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 June 30, 2013 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 Statements of Income

(unaudited)

 

     For the Three Months Ended     For the Six Months Ended  
     June 30, 2013     June 30, 2012     June 30, 2013     June 30, 2012  
           (A)           (A)  

Revenues

        

Rent billed

   $ 31,358,897      $ 30,695,170      $ 63,196,211      $ 60,382,988   

Straight-line rent

     2,746,033        1,324,407        5,407,027        2,683,500   

Income from direct financing leases

     9,229,987        5,370,844        17,986,458        7,206,004   

Interest and fee income

     14,138,106        11,527,153        28,854,926        19,448,573   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     57,473,023        48,917,574        115,444,622        89,721,065   

Expenses

        

Real estate depreciation and amortization

     8,717,644        8,337,468        17,261,597        16,518,219   

Property-related

     649,284        585,861        1,062,131        813,131   

Acquisition expenses

     2,087,903        279,258        2,278,452        3,704,270   

General and administrative

     7,225,370        6,697,114        15,043,566        14,288,670   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     18,680,201        15,899,701        35,645,746        35,324,290   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     38,792,822        33,017,873        79,798,876        54,396,775   

Interest and other income (expense)

     (13,488,033     (14,025,724     (28,645,399     (26,836,842
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     25,304,789        18,992,149        51,153,477        27,559,933   

Income from discontinued operations

     2,099,619        368,283        2,461,056        2,406,728   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     27,404,408        19,360,432        53,614,533        29,966,661   

Net income attributable to non-controlling interests

     (56,582     (44,163     (110,215     (86,522
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to MPT common stockholders

   $ 27,347,826      $ 19,316,269      $ 53,504,318      $ 29,880,139   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share - basic :

        

Income from continuing operations

   $ 0.17      $ 0.14      $ 0.35      $ 0.21   

Income from discontinued operations

     0.01        —          0.02        0.02   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to MPT common stockholders

   $ 0.18      $ 0.14      $ 0.37      $ 0.23   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share - diluted:

        

Income from continuing operations

   $ 0.17      $ 0.14      $ 0.34      $ 0.21   

Income from discontinued operations

     0.01        —          0.02        0.02   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to MPT common stockholders

   $ 0.18      $ 0.14      $ 0.36      $ 0.23   
  

 

 

   

 

 

   

 

 

   

 

 

 

Dividends declared per common share

   $ 0.20      $ 0.20      $ 0.40      $ 0.40   

Weighted average shares outstanding - basic

     149,508,958        134,714,505        144,927,768        129,810,431   

Weighted average shares outstanding - diluted

     151,055,855        134,714,505        146,291,083        129,810,431   

 

(A) Financials have been restated to reclass the operating results of certain properties sold in 2012 and 2013 to discontinued operations.

 

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MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

 

     June 30, 2013     December 31, 2012  
     (Unaudited)     (A)  

Assets

    

Real estate assets

    

Land, buildings and improvements, and intangible lease assets

   $ 1,264,229,001      $ 1,223,760,599   

Construction in progress and other

     30,999,817        38,338,985   

Real estate held for sale

     —          16,497,248   

Net investment in direct financing leases

     391,904,435        314,411,549   

Mortgage loans

     368,650,000        368,650,000   
  

 

 

   

 

 

 

Gross investment in real estate assets

     2,055,783,253        1,961,658,381   

Accumulated depreciation and amortization

     (141,877,101     (124,615,504
  

 

 

   

 

 

 

Net investment in real estate assets

     1,913,906,152        1,837,042,877   

Cash and cash equivalents

     26,072,345        37,311,207   

Interest and rent receivable

     54,231,363        45,288,845   

Straight-line rent receivable

     41,346,929        35,859,703   

Other assets

     218,918,924        223,383,020   
  

 

 

   

 

 

 

Total Assets

   $ 2,254,475,713      $ 2,178,885,652   
  

 

 

   

 

 

 

Liabilities and Equity

    

Liabilities

    

Debt, net

   $ 929,073,531      $ 1,025,159,854   

Accounts payable and accrued expenses

     58,694,110        65,960,792   

Deferred revenue

     25,413,091        20,609,467   

Lease deposits and other obligations to tenants

     18,454,885        17,341,694   
  

 

 

   

 

 

 

Total liabilities

     1,031,635,617        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 - 149,314,178 shares at June 30, 2013 and 136,335,427 shares at December 31, 2012

     149,314        136,336   

Additional paid in capital

     1,472,960,547        1,295,916,192   

Distributions in excess of net income

     (240,131,752     (233,494,130

Accumulated other comprehensive income (loss)

     (9,875,670     (12,482,210

Treasury shares, at cost

     (262,343     (262,343
  

 

 

   

 

 

 

Total Equity

     1,222,840,096        1,049,813,845   
  

 

 

   

 

 

 

Total Liabilities and Equity

   $ 2,254,475,713      $ 2,178,885,652   
  

 

 

   

 

 

 

 

(A) Financials have been derived from the prior year audited financials adjusted for discontinued operations.

 

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ACQUISITIONS FOR THE SIX MONTHS ENDED JUNE 30, 2013

 

                    Investment /  

Name

  

Location

  

Property Type

  

Acquisition / Development

   Commitment  

Ernest Health, Inc.

  

Post Falls, ID

  

Inpatient Rehabilitation Hospital

  

Development

   $ 14,387,000   

Ernest Health, Inc.

  

South Ogden, UT

  

Inpatient Rehabilitation Hospital

  

Development

     19,153,000   

Prime Healthcare

  

Kansas City, KS

  

Acute Care Hospital

  

Acquisition

     60,000,000   

Prime Healthcare

  

Leavenworth, KS

  

Acute Care Hospital

  

Acquisition

     15,000,000   
           

 

 

 

Total Investments / Commitments

            $ 108,540,000   
           

 

 

 

SUMMARY OF DEVELOPMENT PROJECTS AS OF JUNE 30, 2013

 

                                  Estimated  
                      Costs Incurred as           Completion  

Property

  Location  

Property Type

 

Operator

  Commitment     of 6/30/13     Percent Leased     Date  

Victoria Rehabilitation Hospital

  Victoria, TX  

Long-Term Acute Care Hospital

 

Post Acute Medical

  $ 9,400,000      $ 7,937,044        100     3Q 2013   

Spartanburg Rehabilitation Institute

  Spartanburg, SC  

Inpatient Rehabilitation Hospital

 

Ernest Health, Inc.

    17,805,000        12,274,577        100     3Q 2013   

Rehabilitation Hospital of the Northwest

  Post Falls, ID  

Inpatient Rehabilitation Hospital

 

Ernest Health, Inc.

    14,387,000        4,937,076        100     4Q 2013   

Oakleaf Surgical Hospital

  Altoona, WI  

General Acute Care Hospital

 

National Surgical Hospitals

    33,500,000        3,200,783        100     1Q 2014   

First Choice Emergency Rooms

  Various  

General Acute Care Hospital

 

First Choice

    100,000,000        —          100     Various   

Northern Utah Rehabilitation Hospital

  South Ogden, UT  

Inpatient Rehabilitation Hospital

 

Ernest Health, Inc.

    19,153,000        2,650,337        100     3Q 2014   
       

 

 

   

 

 

     
        $ 194,245,000      $ 30,999,817       
       

 

 

   

 

 

     

 

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DETAIL OF OTHER ASSETS AS OF JUNE 30, 2013

 

                  YTD       
            Annual     Ridea       

Operator

   Investment      Interest Rate     Income (4)     

Security / Credit Enhancements

Non-Operating Loans

          

Vibra Healthcare acquisition loan (1)

   $ 13,620,350         10.25      Secured and cross-defaulted with real estate, other agreements and guaranteed by Parent

Vibra Healthcare working capital

     6,012,945         9.63      Secured and cross-defaulted with real estate, other agreements and guaranteed by Parent

Post Acute Medical working capital

     7,873,870         10.86      Secured and cross-defaulted with real estate; certain loans are cross-defaulted with other loans and real estate

Monroe Hospital (2)

     18,141,163           

IKJG/HUMC working capital

     15,050,000         10.4      Secured and cross-defaulted with real estate and guaranteed by Parent
  

 

 

         
     60,698,328           

Operating Loans

          

Ernest Health, Inc. (3)

     93,200,000         15.00     6,990,000       Secured and cross-defaulted with real estate and guaranteed by Parent

IKJG/HUMC convertible loan

     3,351,831           530,019       Secured and cross-defaulted with real estate and guaranteed by Parent
  

 

 

      

 

 

    
     96,551,831           7,520,019      

Equity investments

     13,478,247           1,667,702      

Deferred debt financing costs

     19,507,109            Not applicable

Lease and cash collateral

     6,024,409            Not applicable

Other assets (5)

     22,659,000            Not applicable
  

 

 

      

 

 

    

Total

   $ 218,918,924         $ 9,187,721      
  

 

 

      

 

 

    

 

(1) Original amortizing acquistion loan was $41 million; loan matures in 2019
(2) Ceased accruing interest in 2010; net of $12.0 million reserve.
(3) Cash rate is 7% in 2013 and increases to 10% in 2014.
(4) Income earned on operating loans is reflected in the interest income line of the income statement.
(5) Includes prepaid expenses, office property and equipment and other.

 

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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