Medical Properties Trust(MPW) - 2025 Q2 - Quarterly Results

Medical Properties Trust, Inc. Q2 2025 Results and Update Financial and Operational Highlights The company reported a Q2 2025 net loss of ($0.16) per share and NFFO of $0.14 per share, impacted by impairments Q2 2025 Key Financial Metrics (per share) | Metric | Value | | :--- | :--- | | Net Loss per Share | ($0.16) | | NFFO per Share | $0.14 | | Quarterly Dividend per Share | $0.08 | - The Q2 net loss includes approximately $111 million ($0.18 per share) in impairment and fair market value adjustments, primarily related to the sale of PHP Holdings and certain Prospect bankruptcy transactions[3] - Cash rental income from new tenants grew significantly, increasing to $11.0 million in Q2 from $3.4 million in Q1, representing 96% of scheduled collections[3] - A 50%-owned German joint venture completed a €702.5 million non-recourse, 10-year loan at a 5.1% fixed rate, which the company cites as validation of investor appetite for hospital real estate[3][4] - The company remains confident in its projection to achieve annualized pro rata cash rent of more than $1 billion by the fourth quarter of 2026[3] Portfolio Update The company's portfolio is valued at approximately $15.2 billion across 392 properties with improving operational trends Portfolio Asset Composition (as of June 30, 2025) | Asset Type | Value | | :--- | :--- | | Total Assets | ~$15.2 billion | | General Acute Facilities | $9.1 billion | | Behavioral Health Facilities | $2.5 billion | | Post-Acute Facilities | $1.7 billion | - The portfolio includes 392 properties with approximately 39,000 licensed beds, leased to 53 operators across the US and eight other countries[5] - Operators are reporting increased admissions and surgical volumes, leading to higher TTM EBITDARM coverage for the total portfolio on both a year-over-year and sequential basis[6] - The Prospect bankruptcy restructuring, which began in January 2025, is ongoing, with MPT funding approximately $25 million of junior debtor-in-possession financing as part of a settlement agreement[9] Operating Results Q2 2025 net loss improved to ($98 million) year-over-year, while NFFO decreased to $81 million due to higher interest expense Q2 2025 vs. Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Loss | ($98 million) | ($321 million) | | Net Loss per Share | ($0.16) | ($0.54) | | NFFO | $81 million | $139 million | | NFFO per Share | $0.14 | $0.23 | - Compared to Q1 2025, the Q2 NFFO reflects an approximate $13 million increase in rent billed, which was offset by an approximate $14 million increase in interest expense related to a Q1 secured notes financing[11] Financial Statements Consolidated statements detail the company's financial position, performance, and reconciliation of net loss to NFFO Consolidated Balance Sheets Total assets grew to $15.15 billion and total liabilities rose to $10.32 billion as of June 30, 2025 Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $15,150,428 | $14,294,594 | | Net investment in real estate assets | $11,439,952 | $11,048,595 | | Cash and cash equivalents | $509,828 | $332,335 | | Total Liabilities | $10,316,618 | $9,460,811 | | Debt, net | $9,649,035 | $8,848,112 | | Total Equity | $4,833,810 | $4,833,783 | Consolidated Statements of Income Q2 2025 revenues were $240.4 million, with a net loss of ($98.4 million), an improvement from Q2 2024 Income Statement Summary - Three Months Ended June 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Total revenues | $240,359 | $266,560 | | Total expenses | $233,486 | $246,660 | | Net loss attributable to MPT common stockholders | $(98,357) | $(320,635) | | Net loss per share | $(0.16) | $(0.54) | Reconciliation of Net Loss to Funds From Operations Q2 2025 GAAP net loss of ($98.4 million) was reconciled to Normalized FFO of $81.4 million via key adjustments NFFO Reconciliation - Three Months Ended June 30, 2025 (in thousands) | Item | Amount | | :--- | :--- | | Net loss attributable to MPT common stockholders | $(98,357) | | Depreciation and amortization | $81,332 | | Real estate impairment charges | $(17,715) | | Funds from operations (FFO) | $(40,176) | | Other impairment charges, net | $19,613 | | Non-cash fair value adjustments | $108,827 | | Normalized funds from operations (NFFO) | $81,362 | Conference Call and Webcast A conference call and webcast to discuss Q2 results is scheduled for July 31, 2025, with replay details available - A conference call is scheduled for July 31, 2025, at 11:00 a.m. Eastern Time[12] - A telephone replay will be available through August 7, 2025, and a webcast replay will be available for one year on the company's website[13] Forward-Looking Statements The report contains forward-looking statements and cautions readers about inherent risks and uncertainties - The report contains forward-looking statements concerning strategies, asset sales, liquidity transactions, and the Prospect Chapter 11 restructuring[17] - Key risks that could cause actual results to differ include the outcome of the Prospect bankruptcy, ability to complete property sales, tenant performance, and changes to Medicaid funding from the OBBBA[18] - Readers are cautioned not to place undue reliance on these statements and the company disclaims any responsibility to update them[19]