Medical Properties Trust, Inc. Reports Fourth Quarter Results
Per Share Normalized FFO of $0.31 and Net Income of $0.13
Completes Balance Sheet Restructuring with New Credit Facility
Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW) today announced financial and operating results for the
fourth quarter and year ended December 31, 2016 through 2017’s first quarter.
“In 2016 and through the early days of 2017, MPT achieved all of the operational goals we set early in the year,” said Edward K.
Aldag, Jr., MPT’s Chairman, President and Chief Executive Officer. “We successfully and profitably repositioned our portfolio by
capturing sizable gains from asset sales in the first half and allocating capital to compelling new opportunities in the second
half. The approximate $800 million in asset sales, and our solid execution in the capital markets, helped to significantly
strengthen our balance sheet, reduce leverage, improve liquidity, and position the company for long-term growth.
“In the fourth quarter, we added Steward Health Care to our portfolio of 247 hospitals. Forward-thinking operators, such as
Steward, have proven their ability to effectively navigate the changing landscape of healthcare and profitably provide quality care
to their patients, especially during times of dramatically changing hospital environments such as the implementation of – and now
the unwinding of – the Affordable Care Act. We see significant acquisition opportunities ahead as operators with proven healthcare
delivery models look to expand into new markets with the assistance of MPT.”
FOURTH QUARTER AND RECENT HIGHLIGHTS
- Normalized Funds from Operations (“FFO”) per diluted share was $0.31 in the fourth quarter compared
with $0.35 in fourth quarter of 2015;
- On a full year basis 2016’s Normalized FFO per share increased to $1.28 compared to $1.26 per diluted
share in 2015, an increase even in a year of significant asset sales;
- Acquisitions reported in 2016 totaled approximately $1.8 billion, continuing the trajectory of highly
and immediately accretive growth, compared to approximately $1.7 billion in 2015 and $1.4 billion in 2014;
- Completed the previously announced acquisition of real estate interests in nine Steward Health Care
hospitals in early October for a total investment of $1.25 billion;
- Completed acquisitions of 12 post-acute hospitals to be operated by MEDIAN and its affiliates in
Germany in the fourth quarter for a total investment of approximately $90 million as part of previously announced acquisitions
aggregating $282 million (based on recent exchange rates);
- Completed a new $1.7 billion senior unsecured credit facility with improved pricing in early February
2017; includes a $1.3 billion senior unsecured revolving credit facility, a $200 million senior unsecured term loan, and a €200
million senior unsecured term loan;
- Gave redemption notice for €200 million 5.750% Senior Notes due 2020 to be redeemed with funds from
the €200 million senior unsecured term loan included in the new $1.7 billion credit facility and cash on hand.
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 Adjusted Funds from Operations (“AFFO”), all on a basis comparable to 2015
results.
PORTFOLIO UPDATE
During and after the fourth quarter, MPT made investments in hospital real estate totaling approximately $1.4 billion that was
leased to operators under long-term absolute net leases with GAAP lease rates between 9.5% and 10.5%.
As of December 31, 2016, MPT has leased 59 facilities to Adeptus, with an aggregate investment of approximately $446 million and
an aggregate lease coverage ratio for 43 open facilities of approximately 2.62 times for the twelve months ended September 30,
2016. Adeptus has prepaid all rent through February and, based on facility openings in the fourth quarter of 2016, total revenue
from Adeptus is approximately 7% of MPT’s estimated 2017 total revenue. As of December 31, 2016, 64% of MPT’s Adeptus investments
are leased to joint ventures or partnerships with dominant, market leading hospital systems in each market, and 88% of MPT’s
facilities are being operated as Hospital Outpatient Departments. Among other arrangements, MPT remains beneficiary of irrevocable
letters of credit for an amount equal to approximately four months anticipated cash rent.
The Company has pro forma total gross assets of approximately $7.1 billion including $4.7 billion in general acute care
hospitals, $1.7 billion in inpatient rehabilitation hospitals, and $0.4 billion in long-term acute care hospitals. The portfolio
includes 247 properties representing more than 27,000 licensed beds in 30 states and in Germany, the United Kingdom, Italy and
Spain. The properties are leased to or mortgaged by 30 hospital operating companies.
OPERATING RESULTS AND OUTLOOK
Normalized FFO for the fourth quarter increased 22% to $100.7 million compared with $82.5 million in the fourth quarter of 2015.
Per share Normalized FFO decreased 11% to $0.31 per diluted share in the fourth quarter compared with $0.35 per share in the fourth
quarter of 2015 due to asset sales and completion of planned deleveraging to a sector leading ratio of approximately 5.1 times pro
forma net debt to EBITDA.
For the twelve months ended December 31, 2016, Normalized FFO increased 22% to $334.8 million from $274.8 million in 2015. On a
per diluted share basis, Normalized FFO increased 2% in 2016 to $1.28 from $1.26 in 2015.
Fourth quarter 2016 total revenues increased 17% to $153.3 million compared with $131.5 million for the fourth quarter of 2015.
Revenue for the twelve months ended December 31, 2016 increased 22% to $541.1 million from $441.9 million in 2015.
Net income for the fourth quarter of 2016 was $43.0 million (or $0.13 per diluted share), compared to $58.2 million (or $0.24
per diluted share) in the fourth quarter of 2015. Net income for the twelve months ended December 31, 2016 was $225.0 million (or
$0.86 per diluted share) compared with net income of $139.6 million (or $0.63 per diluted share) in 2015.
The Company reaffirms 2017 Normalized FFO guidance between $1.35 and $1.40 per diluted share and 2017 net income as a range of
between $0.97 and $1.03 per diluted share. These estimates assume acquisitions of between $500 million and $1.0 billion with
leverage neutral financing; sales of $75 million of properties in early 2017; and completion of previously announced acquisitions
and lease backs.
These estimates do not include the effects, if any, of real estate operating costs, litigation costs, debt refinancing costs,
acquisition costs, currency exchange rate movements, change in accounting principles, interest rate hedging activities, write-offs
of straight-line rent or other non-recurring or unplanned transactions. These estimates may change when the Company acquires or
sells assets, market interest rates change, debt is refinanced, new shares are issued, additional debt is incurred, 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 9, 2017 at 11:00 a.m. Eastern Time to present the
Company’s financial and operating results for the quarter and year ended December 31, 2016. The dial-in numbers for the conference
call are 855-365-5214 (U.S.) and 440-996-5721 (international); both numbers require passcode 52407751. 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 beginning shortly after the call’s completion through February 23,
2017. Dial-in numbers for the replay are 855-859-2056 and 404-537-3406 for U.S. and International callers, respectively. The replay
passcode for both U.S. and international callers is 52407751.
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 self-advised real estate investment trust formed to capitalize on the changing trends in
healthcare delivery by acquiring and developing net-leased healthcare facilities. MPT’s financing model allows hospitals and other
healthcare facilities to unlock the value of their underlying real estate in order to fund facility improvements, technology
upgrades, staff additions and new construction. Facilities include acute care hospitals, inpatient rehabilitation hospitals,
long-term acute care hospitals, and other medical and surgical 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
satisfaction of all conditions to, and the timely closing (if at all) of pending transactions; net income per share; Normalized FFO
per share; the amount of acquisitions of healthcare real estate, if any; results from the potential sales, if any, of assets;
capital markets conditions; estimated leverage metrics; 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 payment
of future dividends, if any; completion of additional debt arrangements, and additional investments; national and international
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 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,
2015 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.
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| MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES |
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|
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| Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
| (Amounts in thousands, except for per share data) |
|
|
|
December 31, 2016 |
|
|
December 31, 2015 |
| Assets |
|
|
|
(Unaudited) |
|
|
(A) |
|
Real estate assets |
|
|
|
|
|
|
|
|
|
Land, buildings and improvements, intangible lease assets, and other |
|
|
|
$ |
4,317,866 |
|
|
|
$ |
3,297,705 |
|
|
|
Net investment in direct financing leases |
|
|
|
|
648,102 |
|
|
|
|
626,996 |
|
|
|
Mortgage loans |
|
|
|
|
1,060,400 |
|
|
|
|
757,581 |
|
|
|
|
Gross investment in real estate assets |
|
|
|
|
6,026,368 |
|
|
|
|
4,682,282 |
|
|
|
Accumulated depreciation and amortization |
|
|
|
|
(325,125 |
) |
|
|
|
(257,928 |
) |
|
|
|
Net investment in real estate assets |
|
|
|
|
5,701,243 |
|
|
|
|
4,424,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
83,240 |
|
|
|
|
195,541 |
|
|
Interest and rent receivables |
|
|
|
|
57,698 |
|
|
|
|
46,939 |
|
|
Straight-line rent receivables |
|
|
|
|
116,861 |
|
|
|
|
82,155 |
|
|
Other assets |
|
|
|
|
459,494 |
|
|
|
|
860,362 |
|
| Total Assets |
|
|
|
$ |
6,418,536 |
|
|
|
$ |
5,609,351 |
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Equity |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Debt, net |
|
|
|
$ |
2,909,341 |
|
|
|
$ |
3,322,541 |
|
|
|
Accounts payable and accrued expenses |
|
|
|
|
207,711 |
|
|
|
|
137,356 |
|
|
|
Deferred revenue |
|
|
|
|
19,933 |
|
|
|
|
29,358 |
|
|
|
Lease deposits and other obligations to tenants |
|
|
|
|
28,323 |
|
|
|
|
12,831 |
|
|
|
|
Total Liabilities |
|
|
|
|
3,165,308 |
|
|
|
|
3,502,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstanding
|
|
|
|
|
- |
|
|
|
|
- |
|
|
|
Common stock, $0.001 par value. Authorized 500,000 shares; issued and outstanding - 320,514 shares
at December 31, 2016 and 236,744 shares at December 31, 2015
|
|
|
|
|
321 |
|
|
|
|
237 |
|
|
|
Additional paid-in capital |
|
|
|
|
3,775,336 |
|
|
|
|
2,593,827 |
|
|
|
Distributions in excess of net income |
|
|
|
|
(434,114 |
) |
|
|
|
(418,650 |
) |
|
|
Accumulated other comprehensive loss |
|
|
|
|
(92,903 |
) |
|
|
|
(72,884 |
) |
|
|
Treasury shares, at cost |
|
|
|
|
(262 |
) |
|
|
|
(262 |
) |
|
|
|
Total Medical Properties Trust, Inc. Stockholders' Equity |
|
|
|
|
3,248,378 |
|
|
|
|
2,102,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
4,850 |
|
|
|
|
4,997 |
|
|
|
|
Total Equity |
|
|
|
|
3,253,228 |
|
|
|
|
2,107,265 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total Liabilities and Equity |
|
|
|
$ |
6,418,536 |
|
|
|
$ |
5,609,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Financials have been derived from the prior year audited
financial statements. |
| |
| |
| |
| |
| |
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| MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES |
| |
| Consolidated Statements of Income |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Amounts in thousands, except for per share
data) |
|
|
|
For the Three Months Ended |
|
|
For the Twelve Months Ended |
|
|
|
|
|
|
|
December 31, 2016 |
|
|
December 31, 2015 |
|
|
December 31, 2016 |
|
|
December 31, 2015 |
|
|
|
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(A) |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rent billed |
|
|
|
$ |
92,861 |
|
|
|
$ |
70,253 |
|
|
|
$ |
327,269 |
|
|
|
$ |
247,604 |
|
|
Straight-line rent |
|
|
|
|
14,558 |
|
|
|
|
8,372 |
|
|
|
|
41,067 |
|
|
|
|
23,375 |
|
|
Income from direct financing leases |
|
|
|
|
17,126 |
|
|
|
|
18,660 |
|
|
|
|
64,307 |
|
|
|
|
58,715 |
|
|
Interest and fee income |
|
|
|
|
28,738 |
|
|
|
|
34,261 |
|
|
|
|
108,494 |
|
|
|
|
112,184 |
|
|
|
Total revenues |
|
|
|
|
153,283 |
|
|
|
|
131,546 |
|
|
|
|
541,137 |
|
|
|
|
441,878 |
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization |
|
|
|
|
26,524 |
|
|
|
|
20,140 |
|
|
|
|
94,374 |
|
|
|
|
69,867 |
|
|
Impairment charges |
|
|
|
|
(66 |
) |
|
|
|
- |
|
|
|
|
7,229 |
|
|
|
|
- |
|
|
Property-related |
|
|
|
|
1,120 |
|
|
|
|
1,184 |
|
|
|
|
2,712 |
|
|
|
|
3,792 |
|
|
Acquisition expenses |
|
|
|
|
39,894 |
|
|
|
|
4,345 |
|
|
|
|
46,273 |
|
|
|
|
61,342 |
|
|
General and administrative |
|
|
|
|
13,090 |
|
|
|
|
11,314 |
|
|
|
|
48,911 |
|
|
|
|
43,639 |
|
|
|
Total operating expenses |
|
|
|
|
80,562 |
|
|
|
|
36,983 |
|
|
|
|
199,499 |
|
|
|
|
178,640 |
|
|
|
|
Operating income |
|
|
|
|
72,721 |
|
|
|
|
94,563 |
|
|
|
|
341,638 |
|
|
|
|
263,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
(38,465 |
) |
|
|
|
(35,923 |
) |
|
|
|
(159,597 |
) |
|
|
|
(120,884 |
) |
|
Gain (loss) on sale of real estate and other asset dispositions, net |
|
|
|
|
(70 |
) |
|
|
|
- |
|
|
|
|
61,224 |
|
|
|
|
3,268 |
|
|
Unutilized financing fees/debt refinancing costs |
|
|
|
|
- |
|
|
|
|
(48 |
) |
|
|
|
(22,539 |
) |
|
|
|
(4,367 |
) |
|
Other income (expense) |
|
|
|
|
1,056 |
|
|
|
|
230 |
|
|
|
|
(1,618 |
) |
|
|
|
175 |
|
|
Income tax benefit (expense) |
|
|
|
|
8,003 |
|
|
|
|
(484 |
) |
|
|
|
6,830 |
|
|
|
|
(1,503 |
) |
| Income from continuing operations |
|
|
|
|
43,245 |
|
|
|
|
58,338 |
|
|
|
|
225,938 |
|
|
|
|
139,927 |
|
|
|
Loss from discontinued operations |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(1 |
) |
|
|
|
- |
|
|
|
|
Net income |
|
|
|
|
43,245 |
|
|
|
|
58,338 |
|
|
|
|
225,937 |
|
|
|
|
139,927 |
|
|
|
|
Net income attributable to non-controlling interests |
|
|
|
|
(206 |
) |
|
|
|
(100 |
) |
|
|
|
(889 |
) |
|
|
|
(329 |
) |
|
|
|
Net income attributable to MPT common stockholders |
|
|
|
$ |
43,039 |
|
|
|
$ |
58,238 |
|
|
|
$ |
225,048 |
|
|
|
$ |
139,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
|
$ |
0.13 |
|
|
|
$ |
0.24 |
|
|
|
$ |
0.86 |
|
|
|
$ |
0.64 |
|
|
|
Loss from discontinued operations |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
Net income attributable to MPT common stockholders |
|
|
|
$ |
0.13 |
|
|
|
$ |
0.24 |
|
|
|
$ |
0.86 |
|
|
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
|
$ |
0.13 |
|
|
|
$ |
0.24 |
|
|
|
$ |
0.86 |
|
|
|
$ |
0.63 |
|
|
|
Loss from discontinued operations |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
Net income attributable to MPT common stockholders |
|
|
|
$ |
0.13 |
|
|
|
$ |
0.24 |
|
|
|
$ |
0.86 |
|
|
|
$ |
0.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share |
|
|
|
$ |
0.23 |
|
|
|
$ |
0.22 |
|
|
|
$ |
0.91 |
|
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic |
|
|
|
|
319,833 |
|
|
|
|
237,011 |
|
|
|
|
260,414 |
|
|
|
|
217,997 |
|
|
|
Weighted average shares outstanding - diluted |
|
|
|
|
319,994 |
|
|
|
|
237,011 |
|
|
|
|
261,072 |
|
|
|
|
218,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Financials have been derived from the prior year audited
financial statements. |
| |
| |
| |
| |
| |
| |
| |
| MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES |
| Reconciliation of Net Income to Funds From
Operations |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Amounts in thousands, except for per share
data) |
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
|
|
|
|
|
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO information: |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to MPT common stockholders |
|
|
$ |
43,039 |
|
|
$ |
58,238 |
|
|
$ |
225,048 |
|
|
$ |
139,598 |
|
|
|
Participating securities' share in earnings |
|
|
|
(129 |
) |
|
|
(248 |
) |
|
|
(559 |
) |
|
|
(1,029 |
) |
|
|
|
Net income, less participating securities' share in earnings |
|
|
$ |
42,910 |
|
|
$ |
57,990 |
|
|
$ |
224,489 |
|
|
$ |
138,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization (A) |
|
|
|
26,976 |
|
|
|
20,140 |
|
|
|
96,157 |
|
|
|
69,867 |
|
|
|
Gain on sale of real estate |
|
|
|
- |
|
|
|
- |
|
|
|
(67,168 |
) |
|
|
(3,268 |
) |
|
|
Funds from operations |
|
|
$ |
69,886 |
|
|
$ |
78,130 |
|
|
$ |
253,478 |
|
|
$ |
205,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-off of straight line rent and other |
|
|
|
- |
|
|
|
- |
|
|
|
3,063 |
|
|
|
3,928 |
|
|
|
Transaction costs from non-real estate dispositions |
|
|
|
70 |
|
|
|
- |
|
|
|
5,944 |
|
|
|
- |
|
|
|
Acquisition expenses, net of tax benefit (A) |
|
|
|
34,806 |
|
|
|
4,345 |
|
|
|
46,529 |
|
|
|
61,342 |
|
|
|
Release of valuation allowance |
|
|
|
(3,956 |
) |
|
|
- |
|
|
|
(3,956 |
) |
|
|
- |
|
|
|
Impairment charges |
|
|
|
(66 |
) |
|
|
- |
|
|
|
7,229 |
|
|
|
- |
|
|
|
Unutilized financing fees / debt refinancing costs |
|
|
|
- |
|
|
|
48 |
|
|
|
22,539 |
|
|
|
4,367 |
|
|
|
Normalized funds from operations |
|
|
$ |
100,740 |
|
|
$ |
82,523 |
|
|
$ |
334,826 |
|
|
$ |
274,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
|
2,111 |
|
|
|
2,521 |
|
|
|
7,942 |
|
|
|
10,237 |
|
|
|
Debt costs amortization |
|
|
|
1,814 |
|
|
|
1,792 |
|
|
|
7,613 |
|
|
|
6,085 |
|
|
|
Additional rent received in advance (B) |
|
|
|
(300 |
) |
|
|
(300 |
) |
|
|
(1,200 |
) |
|
|
(1,200 |
) |
|
|
Straight-line rent revenue and other |
|
|
|
(16,921 |
) |
|
|
(11,118 |
) |
|
|
(50,687 |
) |
|
|
(34,218 |
) |
|
|
Adjusted funds from operations |
|
|
$ |
87,444 |
|
|
$ |
75,418 |
|
|
$ |
298,494 |
|
|
$ |
255,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per diluted share data: |
|
|
|
|
|
|
|
|
|
|
|
Net income, less participating securities' share in earnings |
|
|
$ |
0.13 |
|
|
$ |
0.24 |
|
|
$ |
0.86 |
|
|
$ |
0.63 |
|
|
|
Depreciation and amortization (A) |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.37 |
|
|
|
0.32 |
|
|
|
Gain on sale of real estate |
|
|
|
- |
|
|
|
- |
|
|
|
(0.26 |
) |
|
|
(0.01 |
) |
|
|
Funds from operations |
|
|
$ |
0.22 |
|
|
$ |
0.33 |
|
|
$ |
0.97 |
|
|
$ |
0.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-off of straight line rent and other |
|
|
|
- |
|
|
|
- |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
Transaction costs from non-real estate dispositions |
|
|
|
- |
|
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
|
|
Acquisition expenses, net of tax benefit (A) |
|
|
|
0.11 |
|
|
|
0.02 |
|
|
|
0.18 |
|
|
|
0.28 |
|
|
|
Release of valuation allowance |
|
|
|
(0.02 |
) |
|
|
- |
|
|
|
(0.02 |
) |
|
|
- |
|
|
|
Impairment charges |
|
|
|
- |
|
|
|
- |
|
|
|
0.03 |
|
|
|
- |
|
|
|
Unutilized financing fees / debt refinancing costs |
|
|
|
- |
|
|
|
- |
|
|
|
0.09 |
|
|
|
0.02 |
|
|
|
Normalized funds from operations |
|
|
$ |
0.31 |
|
|
$ |
0.35 |
|
|
$ |
1.28 |
|
|
$ |
1.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.05 |
|
|
|
Debt costs amortization |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.03 |
|
|
|
Additional rent received in advance (B) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.01 |
) |
|
|
Straight-line rent revenue and other |
|
|
|
(0.06 |
) |
|
|
(0.05 |
) |
|
|
(0.19 |
) |
|
|
(0.16 |
) |
|
|
Adjusted funds from operations |
|
|
$ |
0.27 |
|
|
$ |
0.32 |
|
|
$ |
1.14 |
|
|
$ |
1.17 |
|
|
|
|
|
|
(A) In 2016, this includes our share of real estate depreciation and acquisition
expenses from unconsolidated joint ventures (if any). Any such amounts are included with the activity of all of our equity
interests in the "Other income (expense)" line on the consolidated statements of income.
|
|
|
|
|
|
(B) Represents additional rent received 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.
|
| |
| |
| |
| |
| |
| |
| |
| MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES |
| Fiscal Year 2017 Guidance Reconciliation |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2017 Guidance - Per Share(1) |
|
|
|
|
|
|
Low |
|
High |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to MPT common stockholders |
|
|
$ 0.97
|
|
$ 1.03
|
|
|
Participating securities' share in earnings |
|
|
- |
|
- |
|
|
|
Net income, less participating securities' share in earnings |
|
|
$ 0.97
|
|
$ 1.03
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
0.34 |
|
0.34
|
|
|
Funds from operations |
|
|
$ 1.31
|
|
$ 1.37 |
|
|
|
|
|
|
|
|
|
|
|
Other adjustments(2) |
|
|
0.04
|
|
0.03
|
|
|
Normalized funds from operations |
|
|
$ 1.35 |
|
$ 1.40 |
|
|
|
|
|
|
|
|
(1) The guidance is based on current expectations and actual results or future events may differ
materially from those expressed in this table, which is a forward-looking statement within the meaning of the
federal securities laws. Please refer to the forward-looking statement included in this press release and our
filings with the Securities and Exchange Commission for a discussion of risk factors that affect our
performance.
|
|
|
(2) Includes acquisition expenses, write-off of straight line rent, transaction costs from non-real
estate dispositions, impairment charges, unutilized fees/debt refinancing costs, and other.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical Properties Trust, Inc.
Tim Berryman, 205-969-3755
Director – Investor Relations
tberryman@medicalpropertiestrust.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20170209005713/en/