BIRMINGHAM, Ala.--(BUSINESS WIRE)--Jul. 10, 2012--
Medical Properties Trust, Inc. (the “Company”) (NYSE: MPW) today
announced that it has restructured all of its 10 existing leases with
affiliates of Prime Healthcare Services (“Prime”) into a master lease
structure and simultaneously entered into cross-collateralization and
cross default provisions concerning three mortgaged Prime hospitals. The
master leased facilities have an investment value (original costs) to
MPT of approximately $250 million.
The new master lease structure has a 10-year term with two 5-year
extension options. The initial lease rate is generally consistent with
the blended average of the prior lease agreements and 2012 revenue from
the Prime leases will not materially differ from prior expectations.
However, the annual escalators, which in the prior leases were limited,
have been increased to reflect 100% of CPI increases, along with a
minimum floor. Under the master lease structure, the performance of each
of the prior individual leases is now secured by all of the real estate
of all leased facilities, improving the credit profile of MPT’s Prime
investments.
MPT has also funded a new $100 million mortgage loan secured by the real
property of the Centinela Hospital Medical Center, which was named as a
“Top 100 Hospital” by Thomson Reuters earlier in 2012. The mortgage loan
is also cross-defaulted to the master lease structure and two other
hospitals previously mortgaged to MPT for a total loan amount of
approximately $265 million.
Last month, eleven Prime hospitals were honored with an “A” Hospital
Safety ScoreSM by The Leapfrog Group, an independent national
nonprofit run by employers and other large purchasers of health
benefits. The panel graded more than 2,600 U.S. hospitals based on data
that tracks preventable errors and medical complications, such as
hospital-acquired infections and medication mix-ups. U.S. hospitals were
assigned an A, B, C, D, or F for their safety. Only 729 hospitals graded
received an “A.”
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a Birmingham, Alabama based
self-advised real estate investment trust formed to capitalize on the
changing trends in healthcare delivery by acquiring and developing
net-leased healthcare facilities. These facilities include inpatient
rehabilitation hospitals, long-term acute care hospitals, regional acute
care hospitals, ambulatory surgery centers and other single-discipline
healthcare facilities, such as heart hospitals and orthopedic hospitals.
For more information, please visit the Company’s website at www.medicalpropertiestrust.com.
The statements in this press release that are forward looking are
based on current expectations and actual results or future events may
differ materially. Words such as “expects,” “believes,” “anticipates,”
“intends,” “will,” “should” and variations of such words and similar
expressions are intended to identify such forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results of the
Company or future events to differ materially from those expressed in or
underlying such forward-looking statements, including without
limitation: the capacity of the Company’s tenants to meet the terms of
their agreements; Normalized FFO per share; the amount of acquisitions
of healthcare real estate, if any; the repayment of debt arrangements;
statements concerning the additional income to the Company as a result
of ownership interests in certain hospital operations and the timing of
such income; the restructuring of the Company’s investments in
non-revenue producing properties; the payment of future dividends, if
any; completion of additional debt arrangements; and additional
investments; national and economic, business, real estate and other
market conditions; the competitive environment in which the Company
operates; the execution of the Company’s business plan; financing risks;
the Company’s ability to maintain its status as a REIT for federal
income tax purposes; acquisition and development risks; potential
environmental and other liabilities; and other factors affecting the
real estate industry generally or healthcare real estate in particular.
For further discussion of the factors that could affect outcomes, please
refer to the “Risk factors” section of the Company’s Annual Report on
Form 10-K for the year ended December 31, 2011, as amended, and as
updated by the Company’s subsequently filed Quarterly Reports on Form
10-Q and other SEC filings. Except as otherwise required by the federal
securities laws, the Company undertakes no obligation to update the
information in this press release.
Source: Medical Properties Trust, Inc.
Medical Properties Trust, Inc.
Charles Lambert, 205-397-8897
Managing
Director – Capital Markets
clambert@medicalpropertiestrust.com