BIRMINGHAM, Ala.–(BUSINESS WIRE)–Medical Properties Belief, Inc. (the “Firm” or “MPT”) (NYSE: MPW) at present introduced that it has efficiently re-leased its Watsonville Group Hospital in Watsonville, CA to Pajaro Valley Well being Care District Company (“Pajaro”) and has bought sure services to Prime Healthcare (“Prime”) pursuant to a tenant buy choice.
In late August, Pajaro, an area not-for-profit group lately created with sturdy neighborhood and state authorities monetary help, acquired the operations of Watsonville Group Hospital following a comparatively quick chapter course of. As a part of this transaction, MPT was repaid greater than $30 million in financing it offered to permit the hospital to stay open to host tens of 1000’s of emergency division visits, admit 1000’s of sufferers and facilitate 1000’s of surgical procedures because the default of the unique operator. The end result of this transaction once more validates MPT’s capacity to underwrite hospitals with infrastructure traits which are interesting to a number of competent operators.
Additionally, in early September, MPT bought to Prime 9 basic acute hospitals and two associated medical workplace buildings in California, Indiana, Nevada and Pennsylvania for internet proceeds of roughly $360 million.
Proceeds from each of those transactions, in addition to roughly $200 million of mortgage compensation proceeds anticipated as the results of LifePoint Well being’s deliberate acquisition of a majority curiosity in Springstone within the first half of 2023, will mix to supply MPT roughly $600 million in near-term liquidity to cut back leverage and execute choose accretive acquisitions. Moreover, the influence of the Watsonville and Prime transactions is totally thought of in MPT’s beforehand communicated per share estimates of full-year 2022 internet revenue and normalized funds from operations.
About Medical Properties Belief, Inc.
Medical Properties Belief, Inc. is a self-advised actual property funding belief shaped in 2003 to amass and develop net-leased hospital services. From its inception in Birmingham, Alabama, the Firm has grown to turn out to be one of many world’s largest house owners of hospital actual property with roughly 435 services and 44,000 beds in ten nations and throughout 4 continents. MPT’s financing mannequin facilitates acquisitions and recapitalizations and permits operators of hospitals to unlock the worth of their actual property belongings to fund facility enhancements, know-how upgrades and different investments in operations. For extra data, please go to the Firm’s web site at www.medicalpropertiestrust.com.
This press launch consists of forward-looking statements inside the which means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Change Act of 1934, as amended. Ahead-looking statements can usually be recognized by means of forward-looking phrases equivalent to “could”, “will”, “would”, “may”, “count on”, “intend”, “plan”, “estimate”, “goal”, “anticipate”, “consider”, “targets”, “outlook”, “steerage” or different comparable phrases, and embrace statements relating to our methods, targets, future growth and improvement actions, and anticipated monetary efficiency. Ahead-looking statements contain identified and unknown dangers and uncertainties which will trigger our precise outcomes or future occasions to vary materially from these expressed in or underlying such forward-looking statements, together with, however not restricted to: (i) the financial, political and social influence of, and uncertainty regarding, potential influence from well being crises (like COVID-19); (ii) the power of our tenants, operators and debtors to fulfill their obligations beneath their respective contractual preparations with us, particularly on account of the adversarial financial influence of the COVID-19 pandemic, and authorities regulation of hospitals and healthcare suppliers in reference to similar (as additional detailed in our Present Report on Type 8-Ok filed with the SEC on April 8, 2020); (iii) our expectations relating to annual steerage for internet revenue and NFFO per share; (iv) our success in implementing our enterprise technique and our capacity to determine, underwrite, finance, consummate and combine acquisitions and investments; (v) the character and extent of our present and future competitors; (vi) macroeconomic situations, equivalent to a disruption of or lack of entry to the capital markets or actions in foreign money trade charges; (vii) our capacity to acquire debt financing on engaging phrases or in any respect, which can adversely influence our capacity to pursue acquisition and improvement alternatives and pay down, refinance, restructure or prolong our indebtedness because it turns into due; (viii) will increase in our borrowing prices on account of modifications in rates of interest and different elements; (ix) worldwide, nationwide and native financial, actual property and different market situations, which can negatively influence, amongst different issues, the monetary situation of our tenants, lenders and establishments that maintain our money balances, and will expose us to elevated dangers of default by these events; (x) elements affecting the actual property business usually or the healthcare actual property business specifically; (xi) our capacity to take care of our standing as a REIT for federal and state revenue tax functions; (xii) federal and state healthcare and different regulatory necessities, in addition to these within the overseas jurisdictions the place we personal properties; (xiii) the worth of our actual property belongings, which can restrict our capacity to get rid of belongings at engaging costs or acquire or keep fairness or debt financing secured by our properties or on an unsecured foundation; (xiv) the power of our tenants and operators to adjust to relevant legal guidelines, guidelines and rules within the operation of the our properties, to ship high-quality companies, to draw and retain certified personnel and to draw sufferers; (xv) potential environmental contingencies and different liabilities; (xvi) the chance that the anticipated acquisition of a majority curiosity in Springstone by LifePoint doesn’t happen; and (xvii) the chance that different property gross sales, mortgage repayments, and different capital recycling transactions don’t happen.
The dangers described above are usually not exhaustive and extra elements may adversely have an effect on our enterprise and monetary efficiency, together with the chance elements mentioned beneath the part captioned “Threat Components” in our Annual Report on Type 10-Ok for the 12 months ended December 31, 2021 and as up to date in our quarterly experiences on Type 10-Q. Ahead-looking statements are inherently unsure and precise efficiency or outcomes could range materially from any forward-looking statements and the assumptions on which these statements are primarily based. Readers are cautioned to not place undue reliance on forward-looking statements as predictions of future occasions. We disclaim any accountability to replace such forward-looking statements, which communicate solely as of the date on which they have been made.