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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.
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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