Investment Grade-Rated Market Leader Assumes Master Lease for All 11
Colorado Emergency Facilities
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Dec. 7, 2017--
Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW)
today announced that UCHealth, an affiliate of University of Colorado
Hospital, has acquired all of the Colorado joint venture interests,
assuming the existing master lease of 11 MPT free standing emergency
facilities. The master lease was amended to provide a new 15-year
initial term effective January 1, 2018 with three five-year renewal
options, while retaining the annual escalation provision of the increase
in the consumer price index with a 2% minimum. The amendments will not
have a material impact on future results of operations.
The strength of MPT’s master lease structure, together with guarantees
from investment grade-rated UCHealth and retention of existing letters
of credit, provide strong protections of MPT’s future rental income.
UCHealth currently has an Aa3 rating with Stable outlook from Moody’s,
AA- rating with Stable outlook from Standard and Poor’s and AA- rating
with Positive outlook from Fitch.
“It is a testimony to MPT’s powerful underwriting that this dominant
leader in the Colorado hospital market was eager to acquire 100%
ownership of these facilities immediately after confirmation of the
Adeptus bankruptcy plan,” said Edward K. Aldag, Jr., MPT’s Chairman,
President and Chief Executive Officer. “This transaction demonstrates
UCHealth’s strong commitment to these locations as a means to provide
excellent care, close to home, for patients. At the same time, Adeptus
strengthens its financial position with respect to its remaining MPT
facilities and MPT adds another important investment grade tenant to its
portfolio.”
The 11 facilities that are now master leased to UCHealth affiliates
represent a gross investment of $58.6 million, and UCHealth’s purchase
of Adeptus’ JV interest reduces MPT’s exposure to Adeptus to less than
4.0% of total pro forma gross assets.
UCHealth encompasses nine hospitals and employs more than 20,000
caregivers and staff throughout its health system. The not-for-profit
entity in 2016 had $6.4 billion in assets and $3.7 billion in revenues.
In its 2017 Best Hospitals Honor Roll, U.S. News & World Report ranked
UCHealth’s University of Colorado Hospital the 15th best
hospital in the United States and number one in Colorado. UCHealth’s
2017 Community Benefits Report contains third party estimates that
UCHealth had a $6.6 billion economic impact in 2016 and attracted $494
million in research funding to the UCHealth Anschutz Medical Campus,
which is home to the University of Colorado School of Medicine. UCHealth
also provided $647 million in community benefits including $259 million
in uncompensated care in fiscal year 2017.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a self-advised real estate investment
trust formed to capitalize on the changing trends in healthcare delivery
by acquiring and developing net-leased healthcare facilities. MPT’s
financing model allows hospitals and other healthcare facilities to
unlock the value of their underlying real estate in order to fund
facility improvements, technology upgrades, staff additions and new
construction. Facilities include acute care hospitals, inpatient
rehabilitation hospitals, long-term acute care hospitals, and other
medical and surgical facilities. 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 satisfaction of all conditions to, and the timely
closing (if at all) of pending transactions; the sale or re-lease of
certain Adeptus facilities; the amount of acquisitions of healthcare
real estate, if any; results from the potential sales, if any, of
assets; capital markets conditions; estimated leverage metrics; 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 payment of future
dividends, if any; completion of additional debt arrangements, and
additional investments; national and international 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 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, 2016 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.
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Source: Medical Properties Trust, Inc.
Medical Properties Trust, Inc.
Tim Berryman, 205-969-3755
Director
– Investor Relations
tberryman@medicalpropertiestrust.com