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Jun 30, 2023
Medical Properties Trust Q2 2023 Earnings Report
Medical Properties Trust reported a net loss and normalized FFO for Q2 2023.
Key Takeaways
Medical Properties Trust reported a net loss of ($0.07) per share and Normalized Funds from Operations (NFFO) of $0.48 per share for the second quarter of 2023. The results include impacts from lease terminations, straight-line rent write-offs, and a tax benefit from establishing a U.K. REIT.
Net loss of ($0.07) and Normalized Funds from Operations (“NFFO”) of $0.48 for the 2023 second quarter on a per diluted share basis.
Commenced in May rent collections at a newly developed post-acute facility in California leased to Ernest Health at a total cost of approximately $50 million.
Sold in July three general acute hospitals in Kansas and Texas to Prime Healthcare for roughly $100 million.
Elected to participate in August as one of seven unrelated initial lenders in Steward Health Care System’s (“Steward”) syndicated asset-backed credit facility.
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
The Company is narrowing its 2023 calendar estimate of per share net income to $0.33 to $0.37 to account for second quarter results and is also narrowing its estimate of per share NFFO to $1.53 to $1.57.
Positive Outlook
- Includes Prospect-related income from the expected resumption of partial California rental payments
- Recognition of the PHP equity value received in the second quarter
- Includes other amounts
- Based on an existing portfolio which includes the impact of binding disposition and leasing transactions
- Excludes expected future contributions from development and other capital projects
Challenges Ahead
- These estimates do not include the effects, among others, of unexpected real estate operating costs
- modifications to lease terms
- changes in accounting pronouncements
- litigation costs, debt refinancing costs, acquisition costs
- currency exchange rate movements, changes in income tax rates, interest rate hedging activities, write-offs of straight-line rent and in place lease intangibles, other impairments or other non-recurring/unplanned transactions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income