Medical Properties Trust, Inc. Provides Portfolio Update

$45 Million Yale Settlement Payment and Additional Sale Proceeds Expected to Significantly Reduce Prospect DIP Loan

Sold Two Facilities in Arizona to Current Operator for ~$50 million

BIRMINGHAM, Ala.--(BUSINESS WIRE)-- Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW) today provided updates with respect to certain hospitals currently leased to Prospect Medical Holdings (“Prospect”) as well as recent asset sales.

Yale New Haven Health System (“Yale”) has entered into a settlement agreement with Prospect and MPT under which Yale will pay $45 million to Prospect, while Prospect and MPT will release Yale of any obligation to purchase the three facilities in Connecticut that it agreed to purchase in 2022. MPT expects that the $45 million will be used to reduce the Company’s outstanding debtor-in-possession (“DIP”) loan to Prospect. The settlement remains subject to approval of the Bankruptcy Court overseeing Prospect’s Chapter 11 case.

In addition, with respect to the hospitals operated by Prospect in Connecticut, Prospect has entered into a definitive agreement with an operator to purchase two of the facilities and is in discussions with another operator to purchase the third facility. Those sales are also subject to Court approval. The $45 million settlement payment from Yale will be additive to proceeds from the sales of all three facilities. Upon completion of these sales, the receipt of the Yale payment and finalization of other previously announced California transactions, MPT expects full repayment of its recent $105 million DIP loan balance, following which its only remaining potential DIP commitment would be a conditional loan of up to $30 million secured by assets including proceeds of causes of action.

Separately, MPT recently sold two facilities in Phoenix, Arizona for approximately $50 million, pursuant to a tenant purchase option. The facilities, which generated nominal monthly cash rent, were among 18 hospitals re-tenanted in 2024 following MPT’s Global Settlement with Steward Health Care System.

MPT expects to use the anticipated cash receipts from the Prospect DIP repayment, the Arizona asset sales and other asset sales for debt repayment, investments, returns to shareholders and general corporate purposes.

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 Birmingham, Alabama, the Company has grown to become one of the world’s largest owners of hospital real estate with 392 facilities and approximately 39,000 licensed beds in nine countries and across three continents as of June 30, 2025. MPT’s financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. For more information, please visit the Company’s website at www.medicalpropertiestrust.com.

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, asset sales and other liquidity transactions (including the use of proceeds thereof), expected re-tenanting of facilities and any related regulatory approvals, and expected outcomes from Prospect’s Chapter 11 restructuring process and any related transactions, including the application of the Yale settlement payment, the closing of the other transactions described in this press release by Prospect and the use of proceeds thereof, and MPT’s remaining DIP obligations. 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 the NOR Healthcare Systems Corp. transaction will not receive required regulatory approvals; (ii) the risk that the timing, outcome and terms of the bankruptcy restructuring of Prospect 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 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; and (xi) the risks and uncertainties of litigation or other regulatory proceedings.

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 Annual Reports 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 to not 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250925525146/en/

Drew Babin, CFA, CMA

Head of Financial Strategy and Investor Relations

Medical Properties Trust, Inc.

(646) 884-9809

dbabin@medicalpropertiestrust.com

Source: Medical Properties Trust, Inc.