MPT Reports Third Quarter Results
Asset sales and refinancing supported debt reduction, while normalized funds from operations declined and HSA missed September rent.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Completed Previously Announced Transactions that Provided Approximately
-
Net income of
$0.34 $0.11 -
Completed the previously announced private offering of approximately
$2.4 billion 50% of the 2027 notes, resulting in a gain of$70 million -
Completed the sales of certain assets which resulted in approximately
$680 million $158 million -
Paid a regular quarterly dividend of
$0.09
Edward K. Aldag, Jr., Chairman, President and Chief Executive Officer, said, “Our results this quarter demonstrate the decisive steps we have taken to strengthen our balance sheet and create greater flexibility to further reduce debt and pursue selective growth opportunities. As healthcare providers around the world seek new solutions to capital challenges, our business model is more important than ever and we are well positioned to create long-term value for our shareholders.
“We are closely monitoring operations at HSA as they navigate continued revenue cycle management challenges that precluded payment of September rent, reducing our NFFO by
Included in the financial tables accompanying this press release is information about the Company’s assets and liabilities, operating results, and reconciliations of net income (loss) to NFFO, including per share amounts, all on a basis comparable to 2025 results.
PORTFOLIO UPDATE
MPT has total assets of approximately
As previously disclosed, during the quarter, the Company sold its remaining interest in five hospitals in
The Company continues to expect portfolio cash rents in excess of
OPERATING RESULTS
Net income for the third quarter ended September 30, 2026 was
CONFERENCE CALL AND WEBCAST
The Company has scheduled a conference call and webcast for October 29, 2026, at 11:00 a.m. Eastern Time to present the Company’s financial and operating results for the quarter ended September 30, 2026. The dial-in numbers for the conference call are 833-461-5787 (Toll-Free) and 585-542-9983, and the Meeting ID is 336661409 to join the conference. The conference call and webcast replay will also be available via webcast in the Investor Relations section of the Company’s website, www.mpt.com. The webcast replay will be available for one year.
The Company’s supplemental information package for the current period will also be available on the Company’s website in the Investor Relations section.
The Company uses, and intends to continue to use, the Investor Relations page of its website, which can be found at www.mpt.com, as a means of disclosing material nonpublic information and complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the Investor Relations page, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “would”, “could”, “expect”, “intend”, “plan”, “estimate”, “target”, “anticipate”, “believe”, “objectives”, “outlook”, “guidance” or other similar words, and include statements regarding our strategies, objectives, prospects, asset sales and the expected proceeds and gains therefrom, refinancings (including the timing of, and expected proceeds from, such refinancings), tenant arrangements (including master leases and lease restructurings, and the expected timing, anticipated rent and financial impact thereof), among others. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results or future events to differ materially from those expressed in or underlying such forward-looking statements, including, but not limited to: (i) the risk that projected rents may be lower than anticipated or realized later than expected; (ii) the risk that the timing, outcome and terms of the causes of action of Prospect Medical Holdings, Inc. (“Prospect”), which serve as collateral for debtor-in-possession and other fundings provided by MPT that remain outstanding, and of other recoveries in respect of the Company’s remaining Prospect investment, will not be consistent with those anticipated by the Company; (iii) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate acquisitions and investments; (iv) the risk that previously announced or contemplated property sales, loan repayments, and other capital recycling transactions do not occur as anticipated or at all; (v) the risk that MPT is not able to attain its leverage, liquidity and cost of capital objectives within a reasonable time period or at all; (vi) MPT’s ability to obtain or modify the terms of debt financing on attractive terms or at all, as a result of changes in interest rates and other factors, which may adversely impact our ability to pay down, refinance, restructure or extend our indebtedness, including extending our 2026 credit facility, as it becomes due, or pursue acquisition and development opportunities; (vii) the ability of our tenants, operators and borrowers to satisfy their obligations under their respective contractual arrangements with us; (viii) the ability of our tenants and operators to operate profitably and generate positive cash flow, remain solvent, comply with applicable laws, rules and regulations in the operation of our properties, to deliver high-quality services, to attract and retain qualified personnel and to attract patients; (ix) the risk that we are unable to monetize our investments in certain tenants at full value within a reasonable time period or at all; (x) the risk that the operations of our tenants will be negatively impacted by changes to Medicaid funding introduced by the OBBBA; (xi) the risks and uncertainties of litigation or other regulatory proceedings; and (xii) the impact of any governmental actions affecting our properties.
The risks described above are not exhaustive and additional factors could adversely affect our business and financial performance, including the risk factors discussed under the section captioned “Risk Factors” in our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, and as may be updated in our other filings with the SEC. Forward-looking statements are inherently uncertain and actual performance or outcomes may vary materially from any forward-looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward-looking statements as predictions of future events. We disclaim any responsibility to update such forward-looking statements, which speak only as of the date on which they were made.
| MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES | |||||||
| Consolidated Balance Sheets | |||||||
| (Amounts in thousands, except for per share data) | |||||||
| September 30, 2026 | December 31, 2025 | ||||||
| Assets | (Unaudited) | (A) | |||||
| Real estate assets | |||||||
| Land, buildings and improvements, intangible lease assets, and other | $ |
11,921,015 |
|
$ |
12,205,687 |
|
|
| Investment in financing leases |
|
384,419 |
|
|
421,684 |
|
|
| Mortgage loans |
|
131,726 |
|
|
123,651 |
|
|
| Gross investment in real estate assets |
|
12,437,160 |
|
|
12,751,022 |
|
|
| Accumulated depreciation and amortization |
|
(1,768,594 |
) |
|
(1,663,056 |
) |
|
| Net investment in real estate assets |
|
10,668,566 |
|
|
11,087,966 |
|
|
| Cash and cash equivalents |
|
599,282 |
|
|
540,859 |
|
|
| Interest and rent receivables |
|
19,137 |
|
|
19,210 |
|
|
| Straight-line rent receivables |
|
944,326 |
|
|
881,452 |
|
|
| Investments in unconsolidated real estate joint ventures |
|
1,045,475 |
|
|
1,399,777 |
|
|
| Investments in unconsolidated operating entities |
|
320,740 |
|
|
322,179 |
|
|
| Other loans |
|
283,015 |
|
|
186,292 |
|
|
| Other assets |
|
513,155 |
|
|
564,040 |
|
|
| Total Assets | $ |
14,393,696 |
|
$ |
15,001,775 |
|
|
| Liabilities and Equity | |||||||
| Liabilities | |||||||
| Debt, net | $ |
9,260,257 |
|
$ |
9,697,835 |
|
|
| Accounts payable and accrued expenses |
|
398,703 |
|
|
549,105 |
|
|
| Deferred revenue |
|
16,930 |
|
|
19,289 |
|
|
| Obligations to tenants and other lease liabilities |
|
95,380 |
|
|
128,297 |
|
|
| Total Liabilities |
|
9,771,270 |
|
|
10,394,526 |
|
|
| Equity | |||||||
| Preferred stock, |
|||||||
| outstanding |
|
- |
|
|
- |
|
|
| Common stock, |
|||||||
| outstanding - 597,157 shares at September 30, 2026 and 597,008 | |||||||
| shares at December 31, 2025 |
|
597 |
|
|
597 |
|
|
| Additional paid-in capital |
|
8,583,101 |
|
|
8,573,396 |
|
|
| Retained deficit |
|
(4,066,730 |
) |
|
(4,136,011 |
) |
|
| Accumulated other comprehensive income |
|
104,405 |
|
|
168,213 |
|
|
| Total Medical Properties Trust, Inc. stockholders' equity |
|
4,621,373 |
|
|
4,606,195 |
|
|
| Non-controlling interests |
|
1,053 |
|
|
1,054 |
|
|
| Total Equity |
|
4,622,426 |
|
|
4,607,249 |
|
|
| Total Liabilities and Equity | $ |
14,393,696 |
|
$ |
15,001,775 |
|
|
| (A) Financials have been derived from the prior year audited financial statements. | |||||||
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES |
|||||||||||||||
Consolidated Statements of Income |
|||||||||||||||
(Unaudited) |
|||||||||||||||
| (Amounts in thousands, except for per share data) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||
| Revenues | |||||||||||||||
| Rent billed | $ |
195,305 |
|
$ |
181,001 |
|
$ |
596,225 |
|
$ |
524,051 |
|
|||
| Straight-line rent |
|
35,699 |
|
|
36,405 |
|
|
103,203 |
|
|
116,197 |
|
|||
| Income from financing leases |
|
10,099 |
|
|
9,944 |
|
|
30,244 |
|
|
29,772 |
|
|||
| Interest and other income |
|
9,037 |
|
|
10,172 |
|
|
31,816 |
|
|
31,660 |
|
|||
| Total revenues |
|
250,140 |
|
|
237,522 |
|
|
761,488 |
|
|
701,680 |
|
|||
| Expenses | |||||||||||||||
| Interest |
|
153,091 |
|
|
132,395 |
|
|
421,683 |
|
|
377,905 |
|
|||
| Real estate depreciation and amortization |
|
70,343 |
|
|
66,993 |
|
|
209,513 |
|
|
198,282 |
|
|||
| Property-related (A) |
|
11,399 |
|
|
8,993 |
|
|
32,541 |
|
|
26,891 |
|
|||
| General and administrative |
|
29,036 |
|
|
37,734 |
|
|
96,012 |
|
|
105,842 |
|
|||
| Total expenses |
|
263,869 |
|
|
246,115 |
|
|
759,749 |
|
|
708,920 |
|
|||
| Other income (expense) | |||||||||||||||
| Gain (loss) on sale of real estate |
|
157,766 |
|
|
(9,115 |
) |
|
163,438 |
|
|
4,156 |
|
|||
| Real estate and other impairment charges, net |
|
(23,870 |
) |
|
(81,761 |
) |
|
(59,670 |
) |
|
(159,284 |
) |
|||
| Earnings from equity interests |
|
6,988 |
|
|
34,403 |
|
|
34,135 |
|
|
73,713 |
|
|||
| Debt refinancing and unutilized financing benefit (costs) |
|
69,524 |
|
|
(14 |
) |
|
69,524 |
|
|
(3,629 |
) |
|||
| Other (including fair value adjustments on securities) |
|
15,424 |
|
|
(1,498 |
) |
|
11,011 |
|
|
(171,138 |
) |
|||
| Total other income (expense) |
|
225,832 |
|
|
(57,985 |
) |
|
218,438 |
|
|
(256,182 |
) |
|||
| Income (loss) before income tax |
|
212,103 |
|
|
(66,578 |
) |
|
220,177 |
|
|
(263,422 |
) |
|||
| Income tax (expense) benefit |
|
(10,026 |
) |
|
(10,872 |
) |
|
12,719 |
|
|
(30,112 |
) |
|||
| Net income (loss) |
|
202,077 |
|
|
(77,450 |
) |
|
232,896 |
|
|
(293,534 |
) |
|||
| Net income attributable to non-controlling interests |
|
(494 |
) |
|
(280 |
) |
|
(1,081 |
) |
|
(828 |
) |
|||
| Net income (loss) attributable to MPT common stockholders | $ |
201,583 |
|
$ |
(77,730 |
) |
$ |
231,815 |
|
$ |
(294,362 |
) |
|||
| Earnings per common share - basic and diluted: | |||||||||||||||
| Net income (loss) attributable to MPT common stockholders | $ |
0.34 |
|
$ |
(0.13 |
) |
$ |
0.39 |
|
$ |
(0.49 |
) |
|||
| Weighted average shares outstanding - basic |
|
597,157 |
|
|
601,136 |
|
|
597,611 |
|
|
600,867 |
|
|||
| Weighted average shares outstanding - diluted |
|
597,162 |
|
|
601,136 |
|
|
597,613 |
|
|
600,867 |
|
|||
| Dividends declared per common share | $ |
0.09 |
|
$ |
0.08 |
|
$ |
0.27 |
|
$ |
0.24 |
|
|||
| (A) Includes |
|||||||||||||||
| MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES | |||||||||||||||
| Reconciliation of Net Income (Loss) to Funds From Operations | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (Amounts in thousands, except for per share data) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||
| FFO information: | |||||||||||||||
| Net income (loss) attributable to MPT common stockholders | $ |
201,583 |
|
$ |
(77,730 |
) |
$ |
231,815 |
|
$ |
(294,362 |
) |
|||
| Participating securities' share in earnings |
|
(353 |
) |
|
(256 |
) |
|
(1,221 |
) |
|
(597 |
) |
|||
| Net income (loss), less participating securities' share in earnings | $ |
201,230 |
|
$ |
(77,986 |
) |
$ |
230,594 |
|
$ |
(294,959 |
) |
|||
| Depreciation and amortization |
|
85,530 |
|
|
82,242 |
|
|
257,433 |
|
|
240,465 |
|
|||
| (Gain) loss on sale of real estate |
|
(155,452 |
) |
|
9,115 |
|
|
(159,990 |
) |
|
(4,156 |
) |
|||
| Real estate impairment charges |
|
12,123 |
|
|
78,677 |
|
|
22,765 |
|
|
126,645 |
|
|||
| Funds from operations | $ |
143,431 |
|
$ |
92,048 |
|
$ |
350,802 |
|
$ |
67,995 |
|
|||
| Other impairment charges, net |
|
13,756 |
|
|
6,976 |
|
|
39,549 |
|
|
40,487 |
|
|||
| Litigation, bankruptcy and other costs |
|
2,413 |
|
|
(1,125 |
) |
|
5,480 |
|
|
11,078 |
|
|||
| Share-based compensation (fair value adjustments) (A) |
|
(8,075 |
) |
|
3,457 |
|
|
(21,362 |
) |
|
3,444 |
|
|||
| Non-cash fair value adjustments |
|
(18,206 |
) |
|
(12,066 |
) |
|
(21,539 |
) |
|
123,370 |
|
|||
| Tax rate changes and other |
|
21 |
|
|
(12,091 |
) |
|
(45,134 |
) |
|
(10,970 |
) |
|||
| Debt refinancing and unutilized financing (benefit) costs |
|
(69,524 |
) |
|
14 |
|
|
(69,524 |
) |
|
4,273 |
|
|||
| Normalized funds from operations | $ |
63,816 |
|
$ |
77,213 |
|
$ |
238,272 |
|
$ |
239,677 |
|
|||
| Certain non-cash and related recovery information: | |||||||||||||||
| Share-based compensation (A) | $ |
8,457 |
|
$ |
8,885 |
|
$ |
27,178 |
|
$ |
27,420 |
|
|||
| Debt costs amortization | $ |
4,814 |
|
$ |
7,445 |
|
$ |
19,480 |
|
$ |
20,435 |
|
|||
| Non-cash rent and interest revenue (B) | $ |
469 |
|
$ |
349 |
|
$ |
1,096 |
|
$ |
349 |
|
|||
| Cash recoveries of non-cash rent and interest revenue (C) | $ |
- |
|
$ |
556 |
|
$ |
210 |
|
$ |
1,620 |
|
|||
| Straight-line rent revenue from operating and finance leases | $ |
(39,252 |
) |
$ |
(39,688 |
) |
$ |
(110,979 |
) |
$ |
(124,945 |
) |
|||
| Per diluted share data: | |||||||||||||||
| Net income (loss), less participating securities' share in earnings | $ |
0.34 |
|
$ |
(0.13 |
) |
$ |
0.39 |
|
$ |
(0.49 |
) |
|||
| Depreciation and amortization |
|
0.14 |
|
|
0.14 |
|
|
0.43 |
|
|
0.40 |
|
|||
| (Gain) loss on sale of real estate |
|
(0.26 |
) |
|
0.01 |
|
|
(0.27 |
) |
|
(0.01 |
) |
|||
| Real estate impairment charges |
|
0.02 |
|
|
0.13 |
|
|
0.03 |
|
|
0.21 |
|
|||
| Funds from operations | $ |
0.24 |
|
$ |
0.15 |
|
$ |
0.58 |
|
$ |
0.11 |
|
|||
| Other impairment charges, net |
|
0.02 |
|
|
0.01 |
|
|
0.07 |
|
|
0.06 |
|
|||
| Litigation, bankruptcy and other costs |
|
0.01 |
|
|
- |
|
|
0.01 |
|
|
0.02 |
|
|||
| Share-based compensation (fair value adjustments) (A) |
|
(0.01 |
) |
|
0.01 |
|
|
(0.03 |
) |
|
0.01 |
|
|||
| Non-cash fair value adjustments |
|
(0.03 |
) |
|
(0.02 |
) |
|
(0.04 |
) |
|
0.21 |
|
|||
| Tax rate changes and other |
|
- |
|
|
(0.02 |
) |
|
(0.07 |
) |
|
(0.02 |
) |
|||
| Debt refinancing and unutilized financing (benefit) costs |
|
(0.12 |
) |
|
- |
|
|
(0.12 |
) |
|
0.01 |
|
|||
| Normalized funds from operations | $ |
0.11 |
|
$ |
0.13 |
|
$ |
0.40 |
|
$ |
0.40 |
|
|||
| Certain non-cash and related recovery information: | |||||||||||||||
| Share-based compensation (A) | $ |
0.01 |
|
$ |
0.01 |
|
$ |
0.05 |
|
$ |
0.05 |
|
|||
| Debt costs amortization | $ |
0.01 |
|
$ |
0.01 |
|
$ |
0.03 |
|
$ |
0.03 |
|
|||
| Non-cash rent and interest revenue (B) | $ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|||
| Cash recoveries of non-cash rent and interest revenue (C) | $ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|||
| Straight-line rent revenue from operating and finance leases | $ |
(0.07 |
) |
$ |
(0.07 |
) |
$ |
(0.19 |
) |
$ |
(0.21 |
) |
|||
Notes: |
|||||||||||||||
|
|||||||||||||||
Investors and analysts following the real estate industry utilize funds from operations ("FFO") as a supplemental performance measure. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets, which assumes that the value of real estate diminishes predictably over time. We compute FFO in accordance with the definition provided by the National Association of Real Estate Investment Trusts, or Nareit, which represents net income (loss) (computed in accordance with GAAP), excluding gains (losses) on sales of real estate and impairment charges on real estate assets, plus real estate depreciation and amortization, including amortization related to in-place lease intangibles, and after adjustments for unconsolidated partnerships and joint ventures. |
|||||||||||||||
|
|||||||||||||||
In addition to presenting FFO in accordance with the Nareit definition, we disclose normalized FFO, which adjusts FFO for items that relate to unanticipated or non-core events or activities or accounting changes that, if not noted, would make comparison to prior period results and market expectations less meaningful to investors and analysts. We believe that the use of FFO, combined with the required GAAP presentations, improves the understanding of our operating results among investors and the use of normalized FFO makes comparisons of our operating results with prior periods and other companies more meaningful. While FFO and normalized FFO are relevant and widely used supplemental measures of operating and financial performance of REITs, they should not be viewed as a substitute measure of our operating performance since the measures do not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs (if any not paid by our tenants) to maintain the operating performance of our properties, which can be significant economic costs that could materially impact our results of operations. FFO and normalized FFO should not be considered an alternative to net income (loss) (computed in accordance with GAAP) as indicators of our results of operations or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity. |
|||||||||||||||
|
|||||||||||||||
Certain line items above (such as depreciation and amortization) include our share of such income/expense from unconsolidated joint ventures. These amounts are included with all activity of our equity interests in the "Earnings from equity interests" line on the consolidated statements of income. |
|||||||||||||||
|
|||||||||||||||
(A) Total share-based compensation expense is |
|||||||||||||||
|
|||||||||||||||
(B) Includes revenue accrued during the period but not received in cash, such as deferred rent, payment-in-kind ("PIK") interest or other accruals. |
|||||||||||||||
|
|||||||||||||||
(C) Includes cash received to satisfy previously accrued non-cash revenue, such as the cash receipt of previously deferred rent or PIK interest. |
|||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20261028521872/en/
Charles Lambert
Senior Vice President of Finance & Treasurer
Medical Properties Trust, Inc.
(205) 397-8897
clambert@mpt.com
Source: MPT