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Sep 30, 2024
Medical Properties Trust Q3 2024 Earnings Report
Announced third quarter results, transitioned operations of 17 former Steward hospitals to five new operators, and completed approximately $2.9 billion of year-to-date liquidity transactions.
Key Takeaways
Medical Properties Trust reported a net loss of ($801 million) or ($1.34) per share for the third quarter of 2024. Normalized Funds from Operations (NFFO) was $0.16 per share. The company transitioned operations of 17 former Steward hospitals to five new operators and completed approximately $2.9 billion of year-to-date liquidity transactions.
Net loss of ($1.34) and Normalized Funds from Operations (NFFO) of $0.16 for the 2024 third quarter on a per share basis.
Third quarter net loss included approximately $130 million in real estate gains, offset by approximately $608 million of impairment charges.
Leased in November two additional former Steward facilities in Arizona with a combined lease base of approximately $140 million to College Health.
MPT expects to begin to receive partial cash rental payments from the re-tenanted portfolio in the first quarter of 2025.
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 begin to receive partial cash rental payments from the re-tenanted portfolio in the first quarter of 2025.
Positive Outlook
- Positive trends in utilization.
- Positive trends in acuity mix.
- Positive trends in reimbursements.
- Successfully re-tenanted 17 Steward hospitals across five states.
- Recover annual cash flows associated with these properties.
Challenges Ahead
- Risk that the outcome and terms of the bankruptcy of Steward will not be consistent with those anticipated
- Risk that the Company is unable to successfully re-tenant the Steward portfolio hospitals
- Risk that previously announced property sales, loan repayments, and other capital recycling transactions do not occur as anticipated
- Risk that MPT is not able to attain its leverage, liquidity and cost of capital objectives within a reasonable time period
- MPT’s ability to obtain debt financing on attractive terms or at all
Revenue & Expenses
Visualization of income flow from segment revenue to net income