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

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, 2012

December 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 other

38,338,985

30,902,348

Real estate held for sale

-

59,793,225

Net investment in direct financing leases

314,411,549

-

Mortgage loans

368,650,000

165,000,000

Gross investment in real estate assets

1,963,776,516

1,429,849,324

Accumulated depreciation and amortization

(126,733,639

)

(93,188,257

)

Net investment in real estate assets

1,837,042,877

1,336,661,067

Cash and cash equivalents

37,311,207

102,725,906

Interest and rent receivable

47,586,709

29,862,106

Straight-line rent receivable

35,859,703

33,993,032

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 expenses

65,960,792

51,124,723

Deferred revenue

20,609,467

23,307,074

Lease deposits and other obligations to tenants

17,341,694

28,777,787

Total liabilities

1,129,071,807

793,058,565

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

136,336

110,786

Additional paid in capital

1,295,916,192

1,055,255,776

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 Ended

For the Twelve Months Ended

December 31, 2012

December 31, 2011

December 31, 2012

December 31, 2011

(A)

(A)

Revenues

Rent billed

$

30,982,990

$

28,640,262

$

123,079,976

$

108,735,374

Straight-line rent

2,553,270

120,344

7,982,068

5,378,698

Income from direct financing leases

8,748,999

-

21,728,141

-

Interest and fee income

15,121,630

5,656,844

48,607,233

21,370,228

Total revenues

57,406,889

34,417,450

201,397,418

135,484,300

Expenses

Real estate depreciation and amortization

8,390,401

8,624,094

33,545,383

30,895,697

Property-related

455,322

395,499

1,495,448

737,847

Acquisition expenses

1,305,731

998,530

5,420,427

4,184,463

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 income

40,015,268

17,609,031

132,354,705

72,446,992

Interest and other income (expense)

(16,120,991

)

(11,312,500

)

(56,961,855

)

(57,927,977

)

Income (loss) from continuing operations

23,894,277

6,296,531

75,392,850

14,519,015

Income from discontinued operations

4,709,113

6,443,222

14,684,097

12,195,089

Net income

28,603,390

12,739,753

90,076,947

26,714,104

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 - basic

134,922,510

110,788,423

132,331,091

110,622,820

Weighted average shares outstanding - diluted

134,930,189

110,788,423

132,333,157

110,628,944

(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, 2012

December 31, 2011

December 31, 2012

December 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 operations

8,390,401

8,624,094

33,545,383

30,895,697

Discontinued operations

52,190

1,407,158

1,310,302

3,813,587

Loss (gain) on sale of real estate