Medical Properties Trust, Inc. · NYSE:MPT
Medical Properties Trust — Merger or Acquisition (May 2017)
16 slides from Medical Properties Trust's merger presentation, May 19, 2017
Slide 1: $1.4 Billion Hospital Real Estate Investment and Long-Term Lease/Loan to Steward Healthcare
MEDICAL PROPERTIES TRUST $1.4 BILLION HOSPITAL REAL ESTATE INVESTMENT AND LONG-TERM LEASE/LOAN TO STEWARD HEALTHCARE MAY 19, 2017 Exhibit 99.2
Slide 2: 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 securities laws of applicable jurisdictions. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “would”, “could”, “expect”, “intend”
Slide 4: Steward/IASIS Acquisition
STEWARD/IASIS ACQUISITION Medical Properties Trust has entered into a definitive agreement to acquire the real estate interests of ten acute care hospitals and one behavioral health facility currently operated by IASIS Healthcare and to be operated by Steward Health Care $1.4 billion transaction $70
Slide 5: Transaction Highlights
TRANSACTION HIGHLIGHTS Strong FFO and coverage accretion Pro forma Steward portfolio totaling $3.3 billion: Generates approximately $298 million in annual revenues split 67% rental income and 33% interest income from mortgages Steward Health Care acquiring IASIS Healthcare operations New MPT $1.4 bi
Slide 6: Strengthened Portfolio
269 Properties 30 Operators 31,266 Beds 29 States Global Portfolio Mix – Countries U.S. Portfolio Mix – Property Type U.S. Portfolio Mix – States Operates in 14 German states Operates in 29 states domestically 5 Countries STRENGTHENED PORTFOLIO TX 14.2% MA 14.0% UT 11.5% CA 6.1% AZ 5.7% Non RE Asset
Slide 7: MPT to Manage Operator Concentration
MPT TO MANAGE OPERATOR CONCENTRATION Continued non-Steward acquisitions ü Potential joint venture of existing Steward assets ü Joint venture of additional Steward investments ü Goal is to reduce to <25% ü MPT has a number of alternatives to manage the overall Steward concentration:
Slide 8: Expected Total Steward Rent Coverages
EXPECTED TOTAL STEWARD RENT COVERAGES 2018E RENT COVERAGES Existing Steward Pro Forma Steward 2016A 2017E 2018E 2019E 2.03x 2.08x 2.83x 3.26x
Slide 9: Steward's Prudent Balance Sheet
4Q16 Healthcare Facilities Net Debt / (EBITDA – NCI) STEWARD’S PRUDENT BALANCE SHEET Source: Company reports; Leerink Partners LLC Research Estimates Pro Forma YE 2018` ($mm) Pro Forma YE 12/31/18 Mortgage loans $1,434 Capital leases 75 ABL outstanding - Gross debt $1,509 Available cash (57) Net deb
Slide 10: Original Steward Transaction
ORIGINAL STEWARD TRANSACTION Total Investment $1.25 billion for 9(1) acute care hospital properties operated by Steward $600 million sale / leaseback in a Master Lease $600 million mortgages cross defaulted with Master Lease $50 million investment in operations for 4.9% of company Estimated lease /
Slide 11: MPT / Steward Acquisition of CHS Hospitals
MPT / STEWARD ACQUISITION OF 8 CHS HOSPITALS Acquisition Investment $301 million sale/leaseback for 8 additional hospitals (including 7 acute care and 1 inpatient rehabilitation hospital) located in three markets Locations: (3) Ohio, (2) Pennsylvania & (3) Florida Original Steward 9 Facilities May 2
Slide 12: MPT / Steward Acquisition of IASIS Hospitals
MPT / STEWARD ACQUISITION OF IASIS HOSPITALS Acquisition Investment $1.4 billion for ten acute care hospitals and one behavioral health facility currently operated by IASIS and to be acquired by Steward Health Care System Locations: (4) Utah, (3) Arizona, (3) Texas & (1) Arkansas Pro forma Steward p
Slide 13: Appendix
Appendix
Slide 14: Acquisition Adjusted EBITDA Reconciliation
ACQUISITION ADJUSTED EBITDA RECONCILIATION PRO FORMA NET DEBT / ANNUALIZED EBITDA (Unaudited) (Amounts in thousands) For the Three Months Ended March 31, 2017 Net income attributable to MPT common stockholders $ 67,970 Pro forma adjustments for capital transactions and acquisitions that occurred aft
Slide 15: Normalized FFO to Net Income Reconciliation
NORMALIZED FFO TO NET INCOME RECONCILIATION MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES Estimated Annual Accretion (1) (Unaudited) Net income attributable to MPT common stockholders $ 0.05 Depreciation and amortization 0.04 Funds from operations - accretion $ 0.09 Acquisition expenses 0.01 Norma
Slide 16: At the Very Heart of Healthcare
At the Very Heart of Healthcare
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