Transaction Yields 5.6% Exit Cap Rate and 17% Unlevered IRR
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Sep. 6, 2018--
Medical Properties Trust, Inc. (“MPT” or the “Company”) (NYSE: MPW),
today announced that it has completed the sale of North Cypress Medical
Center, a 139-bed acute care hospital located in Cypress, Texas near
Houston, to Hospital Corporation of America (“HCA”). The $148 million
sale to HCA resulted in an approximate $100 million gain for MPT and an
unlevered internal rate of return of more than 17% since the completion
of development in 2007. The company expects to use proceeds to make
additional investments in U.S. hospital real estate and for other
corporate purposes.
“North Cypress Medical Center was founded by local physicians who wanted
to create a sophisticated, upscale experience for patients in the
Houston community,” said Edward K. Aldag, Jr., MPT’s Chairman, President
and CEO. “We were pleased to develop this magnificent facility for Dr.
Robert Behar, the hospital’s founder, Chairman and CEO, beginning in
2005, the same year that Medical Properties Trust became a
publicly-traded company.
“Through investments such as North Cypress MPW has generated shareholder
returns far exceeding benchmark REIT indices and also the S&P 500 over
the past ten years and since our IPO. This transaction again indicates
the outstanding value that exists in MPT’s portfolio,” added Aldag.
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
helps facilitate acquisitions and recapitalizations and allows operators
of hospitals and other healthcare facilities to unlock the value of
their real estate assets to fund facility improvements, technology
upgrades and other investments in operations. 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 amount of acquisitions
of healthcare real estate, if any; results from potential sales and
joint venture arrangements, if any; 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, 2017 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180906005898/en/
Source: Medical Properties Trust, Inc.
Medical Properties Trust, Inc.
Tim Berryman, 205-969-3755
Director
– Investor Relations
tberryman@medicalpropertiestrust.com