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Dec 31, 2022
Medical Properties Trust Q4 2022 Earnings Report
Medical Properties Trust reported a net loss and normalized FFO for Q4 2022. The company also provided initial 2023 calendar estimates.
Key Takeaways
Medical Properties Trust reported a net loss of ($0.24) per share and Normalized Funds from Operations (NFFO) of $0.43 per share for the fourth quarter of 2022. The results include a real estate impairment of approximately $171 million and a write-off of roughly $112 million in unbilled Prospect rent. The company is introducing initial 2023 calendar estimates of per share net income and NFFO of $0.83 to $0.98 and $1.50 to $1.65, respectively.
Net loss of ($0.24) and Normalized Funds from Operations (“NFFO”) of $0.43 for the 2022 fourth quarter.
Fourth quarter 2022 net loss includes a real estate impairment of approximately $171 million related to four properties leased to Prospect Medical Holdings.
Write-off of roughly $112 million in unbilled Prospect rent also included in Funds from Operations (“FFO”) but excluded from normalized results.
In December, acquired six Priory behavioral health facilities previously leased from a third-party owner in the UK for £233 million.
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 introducing initial 2023 calendar estimates of per share net income and NFFO of $0.83 to $0.98 and $1.50 to $1.65, respectively.
Positive Outlook
- Significant inflation-based increase in cash rents for 2023
- Expect to recover full investment in Prospect’s Pennsylvania and Connecticut hospitals
- Vast majority of portfolio is positioned to support inflation-based increase in cash rents
- High-end of ranges reflect management’s base case expectation that certain amounts are recovered from Prospect
- Binding disposition transactions and changes to lease terms
Challenges Ahead
- Conservative scenario due to the underperformance of Prospect’s Pennsylvania hospitals
- Process by which we expect to recover our full investment in Prospect’s Pennsylvania and Connecticut hospitals
- Estimates exclude expected future contributions from development and other capital projects
- Estimates exclude the possible future impact of deleveraging and other capital markets strategies
- Low-end accounts for the remote possibility that the entirety of this revenue is recognized subsequent to 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income