Medical Properties Trust, Inc. Reports 27% Increase in Normalized FFO Per Share During 2012

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Medical Properties Trust, Inc. Reports 27% Increase in Normalized FFO Per Share During 2012

2013 Guidance Increased to $1.10 Normalized FFO Per Share

BIRMINGHAM, Ala.--(BUSINESS WIRE)-- Medical Properties Trust, Inc. (the "Company") (NYS: MPW) today announced financial and operating results for the fourth quarter and year ended December 31, 2012.


FOURTH QUARTER AND RECENT HIGHLIGHTS

  • Achieved fourth quarter Normalized Funds from Operations ("FFO") per diluted share of $0.25, an increase of 32% over 2011's $0.19 per diluted share;
  • For the full-year 2012, the Company's $0.90 Normalized FFO per share represented a 27% increase over the $0.71 per share in 2011;
  • Exceeded $800 million in investments and commitments during 2012, including more than $168 million in the fourth quarter of 2012;
  • Sold two properties in the fourth quarter, realizing gains of more than $9.0 million and reflecting an unlevered internal rate of return of 15%;
  • Paid 2012 fourth quarter cash dividend of $0.20 per share, resulting in a dividend payout ratio of a very well-covered 80% of Normalized FFO;
  • Based on expected opportunities to acquire new assets at cash returns that are immediately accretive, the Company has estimated that Normalized FFO per share in 2013 will be $1.10.

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 2011 periods.

"In 2012 we achieved a number of important milestones, increasing assets beyond the $2 billion mark, driving revenue to more than $200 million and increasing Normalized FFO per share by 27% through immediately accretive acquisitions," said Edward K. Aldag, Jr., Chairman, President and CEO of Medical Properties Trust. "We achieved these accomplishments with our strongest acquisition year in history with more than $800 million in investment and commitments, which yield an average first-year return of 10.3%. With a strong acquisition pipeline and favorable capital markets conditions, we expect to make additional accretive acquisitions to drive further increases in Normalized FFO per share in 2013."

OPERATING RESULTS

Fourth quarter 2012 total revenues increased 67% to $57.4 million compared with $34.4 million for the fourth quarter of 2011. Normalized FFO for the quarter increased 65% to $33.9 million compared with $20.5 million in the fourth quarter of 2011. Per share Normalized FFO increased 32% to $0.25 per diluted share during the 2012 fourth quarter, compared with $0.19 per diluted share in the fourth quarter of 2011.

For the twelve months ended December 31, 2012, Normalized FFO was $119.4 million (or $0.90 per diluted share) compared with $78.0 million (or $0.71 per diluted share) in 2011. Revenue for the twelve months ended December 31, 2012, was $201.4 million compared to $135.5 million in 2011.

Net income for the fourth quarter of 2012 was $28.6 million (or $0.21 per diluted share) compared with net income of $12.7 million (or $0.11 per diluted share) in the fourth quarter of 2011. For the full year 2012, net income was $89.9 million (or $0.67 per diluted share) compared to $26.5 million (or $0.23 per diluted share).

PORTFOLIO UPDATE AND FUTURE OUTLOOK

Since September 30, 2012, the Company has made a $17 million investment in a long-term acute care hospital in Hammond, LA and committed to build a replacement hospital in Altoona, WI for $33.5 million for National Surgical Hospitals. As previously announced, the Company also committed to fund a $100 million investment with First Choice ER, LCC to provide sale / leaseback financing for up to 25 freestanding emergency room facilities and fund the $17.8 million construction of a rehabilitation hospital in Spartanburg, SC.

At December 31, 2012, the Company had total real estate and related investments of approximately $2.1 billion comprised of 82 healthcare properties in 25 states leased to 22 hospital operating companies. Based on this portfolio, continued double-digit yields on anticipated acquisitions of $400 million in 2013 and current capital markets conditions, the Company has increased its estimate of 2013 Normalized FFO per share to $1.10, which would represent an increase of 22% over the impressive 2012 results. "Because we are able to invest in hospital real estate that generates these high yields, every dollar invested is immediately accretive to 2013's per share FFO and dividend coverage," said Aldag.

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 $400 million, acquisition 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 Thursday, February 7, 2013; at 11:00 a.m. Eastern Time to present the Company's financial and operating results for the quarter and year ended December 31, 2012. The dial-in telephone numbers for the conference call 866-356-4281 (U.S.) and 617-597-5395 (International); using passcode 17469285. 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 February 21, 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 40589810.

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, 2011, as amended, 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
 
December 31, 2012December 31, 2011
Assets(Unaudited)(A)
Real estate assets
Land, buildings and improvements, and intangible lease assets$1,242,375,982$1,174,153,751
Construction in progress and other38,338,98530,902,348
Real estate held for sale-59,793,225
Net investment in direct financing leases314,411,549-
Mortgage loans 368,650,000  165,000,000 
Gross investment in real estate assets1,963,776,5161,429,849,324
Accumulated depreciation and amortization (126,733,639) (93,188,257)
Net investment in real estate assets1,837,042,8771,336,661,067
 
Cash and cash equivalents37,311,207102,725,906
Interest and rent receivable47,586,70929,862,106
Straight-line rent receivable35,859,70333,993,032
Other assets 221,085,156  118,631,608 
Total Assets$2,178,885,652 $1,621,873,719 
 
Liabilities and Equity
Liabilities
Debt, net$1,025,159,854$689,848,981
Accounts payable and accrued expenses65,960,79251,124,723
Deferred revenue20,609,46723,307,074
Lease deposits and other obligations to tenants 17,341,694  28,777,787 
Total liabilities1,129,071,807793,058,565
 
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 - 136,335,427 shares at December 31, 2012 and 110,786,183 shares at December 31, 2011

136,336110,786
Additional paid in capital1,295,916,1921,055,255,776
Distributions in excess of net income(233,494,130)(214,058,258)
Accumulated other comprehensive income (loss)(12,482,210)(12,230,807)
Treasury shares, at cost (262,343) (262,343)

Total Equity

 1,049,813,845  828,815,154 
 
Total Liabilities and Equity$2,178,885,652 $1,621,873,719 
 
 

(A) Financials have been derived from the prior year audited financials; however, we have reclassed the real estate (including accumulated depreciation) of certain properties sold in 2012 to Real Estate Held for Sale.

 
    
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
 
Consolidated Statements of Income
(Unaudited)
 
For the Three Months EndedFor the Twelve Months Ended
December 31, 2012December 31, 2011December 31, 2012December 31, 2011
(A)(A)
Revenues
Rent billed$30,982,990$28,640,262$123,079,976$108,735,374
Straight-line rent2,553,270120,3447,982,0685,378,698
Income from direct financing leases8,748,999-21,728,141-
Interest and fee income 15,121,630  5,656,844  48,607,233  21,370,228 

Total revenues

57,406,88934,417,450201,397,418135,484,300
Expenses
Real estate depreciation and amortization8,390,4018,624,09433,545,38330,895,697
Property-related455,322395,4991,495,448737,847
Acquisition expenses1,305,731998,5305,420,4274,184,463
General and administrative 7,240,167  6,790,296  28,581,455  27,219,301 
Total operating expenses 17,391,621  16,808,419  69,042,713  63,037,308 
Operating income40,015,26817,609,031132,354,70572,446,992
 
Interest and other income (expense) (16,120,991) (11,312,500) (56,961,855) (57,927,977)
Income (loss) from continuing operations23,894,2776,296,53175,392,85014,519,015
Income from discontinued operations 4,709,113   6,443,222  14,684,097   12,195,089 
Net income28,603,39012,739,75390,076,94726,714,104
Net income attributable to non-controlling interests (47,430) (47,676) (177,252) (178,212)
Net income attributable to MPT common stockholders$28,555,960 $12,692,077 $89,899,695 $26,535,892 
 
 
Earnings per common share - basic and diluted:
Income (loss) from continuing operations$0.18$0.05$0.56$0.12
Income from discontinued operations 0.03  0.06  0.11  0.11 
Net income attributable to MPT common stockholders$0.21 $0.11 $0.67 $0.23 
 
 
Dividends declared per common share$0.20$0.20$0.80$0.80
.
 
Weighted average shares outstanding - basic134,922,510110,788,423132,331,091110,622,820
Weighted average shares outstanding - diluted134,930,189110,788,423132,333,157110,628,944
 
 

(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 For the Twelve Months Ended
December 31, 2012December 31, 2011December 31, 2012December 31, 2011
(A)(A)
FFO information:
Net income attributable to MPT common stockholders$28,555,960$12,692,077$89,899,695$26,535,892
Participating securities' share in earnings (171,473) (229,415) (886,374) (1,089,841)
Net income, less participating securities' share in earnings$28,384,487$12,462,662$89,013,321$25,446,051
 
Depreciation and amortization:
Continuing operations8,390,4018,624,09433,545,38330,895,697
Discontinued operations52,1901,407,1581,310,3023,813,587
Loss (gain) on sale of real estate
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