Medical Properties Trust, Inc. · NYSE:MPT
Medical Properties Trust — REITweek: 2021 Investor Conference
36 slides from Medical Properties Trust's conference presentation, Jun 9, 2021
Slide 1: REITweek: 2021 Investor Conference
Exhibit 99.1 Reading Hospital near London, UK REITweek: 2021 Investor Conference JUNE 2021Exhibit 99.1 Reading Hospital near London, UK REITweek: 2021 Investor Conference JUNE 2021
Slide 2: At the Very Heart of Healthcare
® AT THE VERY HEART OF HEALTHCARE.® AT THE VERY HEART OF HEALTHCARE.
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation 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 forwa
Slide 4: Exclusive Focus on Hospitals
MPT AT THE VERY HEART OF HEALTHCARE EXCLUSIVE FOCUS ON HOSPITALS 2019 U.S. NATIONAL HEALTH EXPENDITURES SUCH AS: • General Acute Care • Inpatient Rehabilitation 31.4% 28.8% • Behavioral Health Hospital Care Other $3.8 Trillion 4.5% Nursing Care Facilities • 2019 National Health Expenditures and CCRC
Slide 5: 2nd Largest Non-Government Owner of Hospitals
MPT AT THE VERY HEART OF HEALTHCARE 2nd largest in the world Non-Government Owner of Hospitals 1 Total Pro Forma Gross Assets $20.9 Billion 5 1 As of March 31, 2021MPT AT THE VERY HEART OF HEALTHCARE 2nd largest in the world Non-Government Owner of Hospitals 1 Total Pro Forma Gross Assets $20.9 Bill
Slide 6: Properties across the U.S. and worldwide
MPT AT THE VERY HEART OF HEALTHCARE 1 In Europe 191 Properties across the U.S. 220 In South America 3 In Australia 11 Total property count as of March 31, 2021 6 1 The Europe property count is adjusted for the Priory Group Transaction.MPT AT THE VERY HEART OF HEALTHCARE 1 In Europe 191 Properties ac
Slide 7: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM OUR MANAGEMENT TEAM IS COMPRISED OF PEOPLE WITH EXTENSIVE EXPERIENCE IN: • Hospital Acquisitions and Finance / Capital Markets • Physician Practice Management • Hospital Development and Construction • Hospital Leases • Hospital Operations • Real Estate Management MPT’s Se
Slide 8: Preeminent Global Hospital Real Estate Platform
PREEMINENT GLOBAL HOSPITAL REAL ESTATE PLATFORM FOCUSED ON INVESTMENTS IN LICENSED HOSPITALS, UNLOCKING VALUE AROUND THE GLOBE TO DELIVER CONTINUED SHAREHOLDER GROWTH Best-in-class acute care Established source of capital portfolio driven by strong for leading hospital operator relationships operato
Slide 9: Well-Diversified Portfolio
WELL-DIVERSIFIED PORTFOLIO GLOBAL PORTFOLIO MIX – COUNTRIES GLOBAL PORTFOLIO MIX - OPERATOR 8% Prospect 8% 425 22% 12% Priory Circle United Kingdom Germany 6% properties 7% Steward (MA) Switzerland 58% 6% 39% United States 6% 46 Operators Australia 5% Steward (UT) 51 Spain 1% 6% operators Other Coun
Slide 10: Largest Operators' Facilities as Percentage of Gross Assets
WELL-DIVERSIFIED PORTFOLIO MPT’S LARGEST 5 OPERATORS’ INDIVIDUAL FACILITIES AS A PERCENTAGE OF TOTAL PRO FORMA GROSS ASSETS STEWARD LARGEST PROPERTY HEALTH CARE AS A PERCENTAGE OF 36 PROPERTIES TOTAL PRO FORMA NON-RE OPERATORS GROSS ASSETS INVESTMENTS Steward Health Care 2.8% (United States) Circle
Slide 11: Operator Update: Steward Health
OPERATOR UPDATE STEWARD HEALTH • Strong liquidity position, $600 million as of March 2021 • Admissions have remained between 93-108% of prior-year levels since June of 2020 (thru March ’21) • Largest physician-owned private, tax-paying health care system in the U.S. • Diversified across six distinct
Slide 12: MPT's Absolute Net Lease Model
MPT’S ABSOLUTE NET LEASE MODEL LEASE STRUCTURE Absolute Net Long-Term Inflation-Protected Master Lease Tenant bears all costs, 10-year to 20-year initial 99% of leases have inflation- Over 95% of properties including maintenance terms with multiple 5-year based or fixed annual rent are master leased
Slide 13: Inflation-Protected Leases
INFLATION-PROTECTED LEASES ~90% OF AGREEMENTS PROVIDE FOR CPI-BASED ESCALATORS o Materially all such contracts include minimum escalators averaging nearly 2% annually o ~75% of CPI-based arrangements include inflation ceilings averaging approximately 4.5% annually Absolute Net Long-Term Master Lease
Slide 14: A Proven Growth Strategy
A PROVEN GROWTH STRATEGY ACUTE CARE REAL ESTATE OPPORTUNITY IS RAPIDLY EXPANDING Growing Acceptance Further Accretive Large Domestic & of Sale-Leaseback Consolidation of Opportunities in International Model Among Hospital Systems 1H 2021 and Beyond Opportunity Set Not-for-Profit Operators • Substant
Slide 15: Hospital Expertise Essential to Underwriting
HOSPITAL EXPERTISE ESSENTIAL TO UNDERWRITING Market Operator • MPT’s underwriting process involves a • MPT seeks to be aligned with proven operators comprehensive study and evaluation of each having a successful track record and individual hospital and the market it serves, even if demonstrating mar
Slide 16: Profile of an MPT Infrastructure Hospital
PROFILE OF AN MPT INFRASTRUCTURE HOSPITAL Community Need Contributes to Stable and Naturally Diverse Revenue Base ✓ Positive population growth, density and/or aging trends✓ Diversified referral base, by both practice and specialization ✓ Accommodating economic/political conditions✓ Physicians commun
Slide 17: International Investment Atlas: United States
INTERNATIONAL INVESTMENT ATLAS: UNITED STATES 57.6% % of MPT Total Pro Forma Gross Assets 17.7% Healthcare Spending As % of GDP UNITED 328M Population STATES 38.5 Median Age $65,298/+1.8% GDP Per Capita (USD) & 3-Year CAGR NATIONAL HEALTH LANDSCAPE INVESTMENT OPPORTUNITY • Global standard for qualit
Slide 18: International Investment Atlas: U.K.
INTERNATIONAL INVESTMENT ATLAS: U.K. 22.4% % of MPT Total Pro Forma Gross Assets U.K. 10.0% Healthcare Spending As % of GDP 67M Population 40.6 Median Age $42,329/+0.9% GDP Per Capita (USD) & 3-Year CAGR NATIONAL HEALTH LANDSCAPE INVESTMENT OPPORTUNITY • Robust investment spreads considering 6th • O
Slide 19: International Investment Atlas: Germany
INTERNATIONAL INVESTMENT ATLAS: GERMANY 6.3% % of MPT Total Pro Forma Gross Assets 11.4% Healthcare Spending As % of GDP GERMANY 83M Population 47.8 Median Age $46,468/+1.2% GDP Per Capita (USD) & 3-Year CAGR NATIONAL HEALTH LANDSCAPE INVESTMENT OPPORTUNITY • Returns attractive considering sociopoli
Slide 20: International Investment Atlas: Switzerland
INTERNATIONAL INVESTMENT ATLAS: SWITZERLAND 6.0% % of MPT Total Pro Forma Gross Assets 11.9% Healthcare Spending As % of GDP SWITZERLAND 9M Population 42.7 Median Age $81,989/+1.0% GDP Per Capita (USD) & 3-Year CAGR NATIONAL HEALTH LANDSCAPE INVESTMENT OPPORTUNITY • Aging of population increases dem
Slide 21: International Investment Atlas: Australia
INTERNATIONAL INVESTMENT ATLAS: AUSTRALIA 4.7% % of MPT Total Pro Forma Gross Assets 9.3% Healthcare Spending As % of GDP AUSTRALIA 25M Population 37.5 Median Age $55,057/+0.9% GDP Per Capita (USD) & 3-Year CAGR NATIONAL HEALTH LANDSCAPE INVESTMENT OPPORTUNITY • Growing and aging population drive ne
Slide 22: 2020 Investments – Increasing Diversification & Scale
2020 INVESTMENTS – INCREASING DIVERSIFICATION & SCALE $3.6 BILLION of Investments in 2020 Circle U.S. Acute Care Swiss Medical U.K. Acute Care Mortgage International Development Health/BMI and IRF Network Conversions Joint Venture Projects 30 1 15 3 2 2 3 Acute care hospitals Acute care hospital Acu
Slide 23: Acquisition of Priory Behavioral Health Portfolio
ACQUISITION OF PRIORY BEHAVIORAL HEALTH PORTFOLIO TRANSACTION UPDATE REPRESENTATIVE ASSETS — On January 6, 2021, MPT announced the acquisition of a portfolio of behavioral health facilities owned and operated by the Priory Group (“Priory”), a leading U.K.-based private behavioral health service prov
Slide 24: Priory Group Is an Established Behavioral Health Services Provider
PRIORY GROUP IS AN ESTABLISHED BEHAVIORAL HEALTH SERVICES PROVIDER 2 GEOGRAPHIC FOOTPRINT QUALITY U.K. BEHAVIORAL HEALTH PLATFORM Comprehensive service offering leading positions in all areas of behavioral health, in both adults and children, and across the entire ✓ 1 care pathway Attractive geograp
Slide 25: Priory Has a Leading Market Position in the U.K.
PRIORY HAS A LEADING MARKET POSITION IN THE U.K. 1 BEHAVIORAL HEALTH MARKET SHARE 26% 26 % 17% 17 % 11% 10% 11 % 10 % 4% 4 % 2% 2% 2 % 2 % 1% 1 % Priory Group Cygnet Health Care St Andrew's Elysium Healthcare Four Seasons Royal Hospital Barchester Ludlow Street Healthcare Health Care Healthcare Heal
Slide 26: Sustained TSR Outperformance
SUSTAINED TSR OUTPERFORMANCE TOTAL SHAREHOLDER RETURNS COMPARED TO BENCHMARK INDICES S&P 500, MSCI U.S. REIT and SNL U.S. REIT Healthcare 555% 387% 328% 283% 233% 215% 131% 121% 105% 97% 85% 64% 41% 38% 36% 33% MSCI SNL SNL MSCI S&P 500 SNL S&P 500 MPW SNL MSCI S&P 500 MPW MSCI S&P 500 MPW MPW 3-YEA
Slide 27: Transformative Investments Driving MPT's Growth
TRANSFORMATIVE INVESTMENTS DRIVING MPT’S EXTRAORDINARY GROWTH GROSS ASSETS ($ in millions) Completes the acquisition of 30 acute care hospitals in the U.K. from BMI Healthcare for approximately $2.0 billion. $20,861 $20,430 Completes joint venture with Primonial Acquires real Group for 71 German est
Slide 28: Leases Structured for Predictable Cash Flow (incl. CARES Act)
LEASES STRUCTURED FOR PREDICTABLE CASH FLOW (A) SAME STORE TTM EBITDARM RENT COVERAGE INCLUSIVE OF CARES ACT GRANTS YOY AND SEQUENTIAL QUARTER COMPARISONS BY PROPERTY TYPE 5.00x 4.00x 3.00x 2.00x 1.00x 0.00x General Acute Care Hospitals Inpatient Rehabilitation Facilities Long-Term Acute Care Hospit
Slide 29: Leases Structured for Predictable Cash Flow (excl. CARES Act)
LEASES STRUCTURED FOR PREDICTABLE CASH FLOW (A) SAME STORE EBITDARM RENT COVERAGE EXCLUDING ALL CARES ACT GRANTS YOY AND SEQUENTIAL QUARTER COMPARISONS BY PROPERTY TYPE 5.00x 4.00x 3.00x 2.00x 1.00x 0.00x General Acute Care Hospitals Inpatient Rehabilitation Facilities Long-Term Acute Care Hospitals
Slide 30: Laddered Debt Maturities
LADDERED DEBT MATURITIES DEBT MATURITY SCHEDULE $1,551,310 $1,389,150 $1,400,000 $1,300,000 $1,090,939 $900,000 $826,980 $586,500 $551,320 $482,405 $- 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2024 Credit Facility Revolver 2026 Term Loan 4.000% Notes Due 2022 2.550% Notes Due 2023 2024
Slide 31: Corporate Responsibility: Environmental
CORPORATE RESPONSIBILITY Solar panels above employees’ parking lot at Desert Valley Hospital, Prime’s 148-bed general acute hospital in Victorville, CA Pictured: IMED Valencia Hospital (Spain) Environmental • ESG Committee formed in 2019 to drive environmental • Saved over 200,000 kWh in energy usag
Slide 32: Corporate Responsibility: Social
CORPORATE RESPONSIBILITY 40% 41% Report to female Female manager employees MPT has served as a presenting sponsor of Mitchell’s Place “A Night at the Oscars.” Mitchell’s Place is a nonprofit organization that provides preschool and other services to children with autism and other developmental disab
Slide 33: Corporate Responsibility: Governance and Board Composition
CORPORATE RESPONSIBILITY MPW BOARD COMPOSITION Gender Tenure Age Minority 59.4 50% 13% 25% 6 years 1 Average Age Minority Women or less Key Director Skills Executive Leadership Experience Industry Experience Financial & Accounting Experience Investment Experience 5 directors out of 8 6 directors out
Slide 34: Appendix
APPENDIX 34APPENDIX 34
Slide 35: Total Pro Forma Gross Assets Reconciliation
TOTAL PRO FORMA GROSS ASSETS RECONCILIATION Total Pro Forma Gross Assets (Unaudited) (Amounts in millions) December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 December 31, 2020 March 31, 2021 Total Assets $6,419 $9,020 $8,844 $14,467 $16,829 $18,746 Add: Real estate commitments o
Slide 36: At the Very Heart of Healthcare
® AT THE VERY HEART OF HEALTHCARE.® AT THE VERY HEART OF HEALTHCARE.
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