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Mar 31, 2024
Medical Properties Trust Q1 2024 Earnings Report
Announced first quarter results, executed total liquidity transactions of $1.6 billion year-to-date, and reduced debt, net of cash, by approximately $1.6 billion since the first quarter of 2023.
Key Takeaways
Medical Properties Trust reported a net loss of ($1.23) per share and Normalized Funds from Operations (NFFO) of $0.24 per share for the first quarter of 2024. The net loss included $693 million in impairments, primarily related to Steward Health Care System and the International Joint Venture. The company executed $1.6 billion in liquidity transactions year-to-date and reduced debt by approximately $1.6 billion since Q1 2023.
Net loss of ($1.23) and Normalized Funds from Operations (“NFFO”) of $0.24 for the 2024 first quarter on a per share basis.
First quarter net loss included approximately $693 million ($1.16 per share) in impairments, primarily non-real estate adjustments related to Steward Health Care System (“Steward”) and the International Joint Venture.
Completed in April the sale of five hospitals in California and New Jersey to Prime Healthcare for $350 million.
Sold in April a 75% interest in five Utah hospitals operated by an affiliate of CommonSpirit Health to an institutional asset manager, resulting in approximately $1.1 billion of total proceeds.
Medical Properties Trust
Medical Properties Trust
Medical Properties Trust Revenue by Segment
Revenue by Segment
Rent Billed Revenue
CapyFin.comStraight-line Rent Revenue
CapyFin.comIncome from Financing Leases Revenue
CapyFin.comInterest and Other Income Revenue
CapyFin.com Forward Guidance
MPT expects to exceed initial target of $2.0 billion in liquidity transactions in 2024. Steward's bankruptcy may facilitate transition to new operators. MPT approved $75 million in debtor-in-possession financing.
Positive Outlook
- MPT expects to exceed initial target of $2.0 billion in liquidity transactions in 2024
- MPT's capital allocation strategy has been validated by strong market demand for hospital assets.
- MPT's financing model allows operators to unlock the value of their real estate assets.
- MPT has constructed a highly diversified portfolio across geographies, operators, and facility types.
- MPT's operations benefit from strong growth in reimbursement rates, overall volumes and high acuity admissions.
Challenges Ahead
- Steward's recent filing for Chapter 11 bankruptcy.
- Expense headwinds remain, particularly for labor and energy.
- MPT has agreed to provide $75 million in DIP funding to ensure continued operations and continuity of patient care.
- Net loss for the quarter ended March 31, 2024 included approximately $693 million ($1.16 per share) of impairments.
- The primary cause of the decrease in NFFO year-over-year was the significant decrease in revenue related to Steward.
Revenue & Expenses
Visualization of income flow from segment revenue to net income