Medical Properties Trust, Inc. · NYSE:MPT
Medical Properties Trust — Investor Presentation (August 2022)
14 slides from Medical Properties Trust's investor presentation, Aug 3, 2022
Slide 1: Investor Update August 2022
Pictured: Morton Hospital Investor Update AUGUST 2022
Slide 2: At the Very Heart of Health Care
AT THE VERY HEART OF HEALTH CARE.®
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: MPT Invests in Real Estate, Not the Consolidated Financial Performance of Its Tenants
MPT INVESTS IN REAL ESTATE NOT THE CONSOLIDATED FINANCIAL PERFORMANCE OF ITS TENANTS MPT’S UNDERWRITING PROCESS IDENTIFIES CERTAIN CHARACTERISTICS IN EACH PHYSICAL FACILITY THAT MAKE IT ATTRACTIVE TO ANY EXPERIENCED AND COMPETENT OPERATOR –INCLUDING THE CURRENT TENANT • History of maintenance and im
Slide 5: Essential Hospital Real Estate Stays Leased to Competent Operators
ESSENTIAL HOSPITAL REAL ESTATE STAYS LEASED TO COMPETENT OPERATORS, AS PROVEN BY MPT’S HISTORY SPECIALIZED EXPERTISE DEMONSTRATED MPT CASH FLOWS PROTECTED BY THE NATURE FOR NEARLY TWO DECADES OF HOSPITALS, AS WELL AS LEASE STRUCTURE MPT has replaced only 11 operators of 20 facilities, in addition to
Slide 6: For MPT Purposes, an Operator Is as Healthy as Its Hospitals
FOR MPT PURPOSES, AN OPERATOR IS AS HEALTHY AS ITS HOSPITALS MPT IS COMMITTED TO TRANSPARENT COVERAGE REPORTING THAT ALIGNS WITH ITS OWN FACILITY-CENTRIC UNDERWRITING APPROACH Tenants operate and invest in business segments not directly MPT rarely owns 100% of an operator’s real estate and, in relev
Slide 7: Conservative EBITDAR Coverage Reporting Reintroduced
CONSERVATIVE EBITDAR COVERAGE REPORTING REINTRODUCED TO FURTHER ENHANCE TRANSPARENCY FACILITY-LEVEL EBITDARM = NET FACILITY REVENUE, LESS DIRECT OPERATING EXPENSES SUCH AS: PEOPLE SUPPLIES DRUGS MAINTENANCE PROPERTY TAX UTILITIES INSURANCE (Wages, Benefits, AND REPAIRS Contract Labor, (expensed here
Slide 8: Investment in Operators Instrumental in Assembling Real Estate but Secondary Focus
INVESTMENT IN OPERATORS INSTRUMENTAL IN ASSEMBLING REAL ESTATE BUT REMAINS A SECONDARY FOCUS MPT HAS LONG INVESTED A RELATIVELY SMALL PERCENTAGE OF ITS OVERALL PORTFOLIO IN ITS OPERATORS â–ª Importantly, more than half of MPT’s investments in 10% unconsolidated entities in the second quarter of 2022
Slide 9: Competence and Confidence to Invest in OpCos: A Highly Profitable Competitive Advantage
COMPETENCE AND CONFIDENCE TO INVEST IN OPCOS: A HIGHLY PROFITABLE COMPETITIVE ADVANTAGE MPT’S SCALE AND EXPERTISE ARE OF GREAT BENEFIT WHEN A SELLER MANDATES A “WHOLECO” EXIT OpCo Exit OpCo 2004 2012 Holding period: (Ernest, Capella, Springstone) Holding period: Seven IRF/LTACH + $400 MM “WholeCo” 6
Slide 10: Current OpCo Roster Similar to Prior Transactions
CURRENT OPCO ROSTER SIMILAR TO PRIOR TRANSACTIONS IN ORIGIN, STRUCTURE AND POTENTIAL Materially all cash investment consideration paid to sellers of real estate and/or operations, not to the current operator International JV Est. 2021 Est. 2020 Est. 2016 Real Estate ~$870 MM Real Estate ~$4.6BN Real
Slide 11: Steward Relationship Is Creating Enduring Property-Based Value for MPT
STEWARD RELATIONSHIP IS CREATING ENDURING PROPERTY-BASED VALUE FOR MPT—WITH OPCO “OPTION VALUE” â–ª Approximately $1.6 billion in cash rent and interest â–ª Secondarily, equity and structured debt investments collected on real estate leased to Steward since Q4 2016 position MPT to benefit from growt
Slide 12: Steward Operations Have Improved Substantially
STEWARD OPERATIONS HAVE IMPROVED SUBSTANTIALLY, AHEAD OF FOURTH QUARTER CASH FLOW RESET WINNING CORPORATE STRATEGY Steward is focused on applying its physician-led and technologically advanced care delivery model to improve outcomes, lower costs and create lasting partnerships with communities. The
Slide 13: Hospital Real Estate That Stays Leased Supports Decades of Compounding Cash Flow
HOSPITAL REAL ESTATE THAT STAYS LEASED SUPPORTS DECADES OF COMPOUNDING, INFLATION-PROTECTED CASH FLOW ESCALATORS CREATE IMMEDIATE VALUE WITHOUT A CORRESPONDING CAPITAL COST Pro forma 2022 cash rent1 ~$1,295 MM Estimated escalation for 20232 ~$57 MM Total estimated 2023 cash rent ~$1,352 MM Estimated
Slide 14: 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 December 31, 2021 June 30, 2022 Total Assets $ 6,419 $ 9,020 $ 8,844 $ 14,467 $ 16,829 $ 20,520 $ 19,74
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