Medical Properties Trust, Inc. · NYSE:MPT
Medical Properties Trust — Investor Presentation (April 2022)
18 slides from Medical Properties Trust's investor presentation, Apr 28, 2022
Slide 1: Investor Update April 2022
Exhibit 99.3 HM Torrelodones – Madrid, Spain INVESTOR UPDATE APRIL 2022
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 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: Who Is MPT?
WHO IS MPT? MPT IS THE ONLY VEHICLE FOR INVESTMENT IN HOSPITAL REAL ESTATE IN THE MOST ADVANCED GLOBAL MARKETS From our inception, we have executed a single, unchanging strategy to deliver to our shareholders: • Premium real estate returns • Backed by long-term net leases of the most critical facili
Slide 5: Long-Term Outperformance: Well-Covered Dividend and Sustained AFFO Growth
LONG-TERM OUTPERFORMANCE: WELL-COVERED DIVIDEND AND SUSTAINED AFFO PER SHARE GROWTH CASH CANNOT BE ENGINEERED OR MANIPULATED Since 2012: AFFO and Dividends Paid ($ thousands; 2012 - 2021) $1,000,000 $8.3 BILLION IN $800,000 SHAREHOLDER $600,000 1 VALUE CREATION $400,000 $200,000 ▪ $3.2 billion in ca
Slide 6: MPT Stock Inexpensive on Cash Earnings Metrics
MPT STOCK (NYSE: MPW) INEXPENSIVE ON CASH EARNINGS METRICS CASH CANNOT BE ENGINEERED OR MANIPULATED 2022E AFFO MULTIPLE (CONSENSUS) 35.0x 29.9x 30.0x 23.4x 23.4x 25.0x 20.9x 20.2x 20.0x 16.9x 12.5x 15.0x 10.0x 10.0x 5.0x 0.0x WELL VTR PEAK HTA HR DOC MPW OHI DIVIDEND YIELD AND 2022E AFFO PAYOUT (CON
Slide 7: Profitability, Even in the Worst of Circumstances: Adeptus Case Study
PROFITABILITY, EVEN IN THE WORST OF CIRCUMSTANCES ADEPTUS CASE STUDY: RENT NOT REDUCED AND TENANT NOT SUBSIDIZED MPT model mitigates operator-specific risks such that, even in event of bankruptcy: RENTS ARE PAID VALUE IS PROTECTED NEW TENANTS ARE AVAILABLE In the case of $415 million initial investm
Slide 8: Net Lease Cash Yields Should Trend Up and to the Right
2025 2021 2024 2023 2020 2022 2019 2021 2020 2018 2019 2017 2018 2017 2016 2016 2015 2015 2014 2014 2013 2013 2012 2012 NET LEASE CASH YIELDS SHOULD TREND “UP AND TO THE RIGHT” THIS IS EXACTLY WHAT MPT’S LEASES OFFER CASH RENT Generic MPT lease example, assuming: $12,000,000 Yields grow more $11,500
Slide 9: MPT Coverage Reporting Methodology
MPT COVERAGE REPORTING METHODOLOGY: BOTTOM-UP APPROACH MATCHES MPT UNDERWRITING PHILOSOPHY AND LEASE MECHANICS MPT REPORTING METHODOLOGY CMS COST REPORT METHODOLOGY* ✓ Property-specific coverages • CMS reporting is neither GAAP nor cash-based • Individual hospitals use CMS Worksheet A to ✓ TTM cover
Slide 10: Hospital Underwriting Is MPT's Core Competency: Steward Investment
HOSPITAL UNDERWRITING IS MPT’S CORE COMPETENCY CASH FLOW GENERATION OF PROPERTIES ALONE SUPPORTS GROWING RENTS, CASH REAL ESTATE GAINS MPT INVESTMENT IN STEWARD HOSPITALS HAS BEEN HIGHLY SUCCESSFUL $4.5 billion of investments in properties initially operated by Steward $4.3 billion (95%) of MPT’s co
Slide 11: Steward Hospital Underwriting Case Studies
HOSPITAL UNDERWRITING IS MPT’S CORE COMPETENCY STEWARD HOSPITAL UNDERWRITING CASE STUDIES STEWARD MASS. PORTFOLIO UTAH HOSPITALS (IASIS HEALTHCARE) SCENIC MOUNTAIN MEDICAL CENTER 5 Hospitals UT Oct 2019 1 Hospital TX Oct 2016 9 Hospitals MA Sept 2017 • Utah portfolio established with $1.4 billion IA
Slide 12: MPT Equity Investments: Real Estate Investment Is the Core
MPT “EQUITY” INVESTMENTS REAL ESTATE INVESTMENT IS THE CORE OF MPT UNCONSOLIDATED INVESTMENT ACTIVITY • $1.5 billion equity investment representing $3.2 billion (at MPT Total Pro Forma Gross Assets MPT’s share) portfolio of general acute and post-acute care facilities across five countries 13% • Nea
Slide 13: MPT Equity Investments
MPT “EQUITY” INVESTMENTS ($ in thousands) HOSPITAL EXPERTISE AND COMPREHENSIVE UNDERWRITING INVESTMENT AS OF OWNERSHIP PROCESS ALLOW FOR OPPORTUNISTIC INVESTMENTS IN 1 OPERATOR 3/31/2022 INTEREST BASIC DESCRIPTION HOSPITAL OPERATIONS Loan is secured by the equity of Steward and provides for an initi
Slide 14: G&A in Perspective: Executive Compensation Alignment
G&A IN PERSPECTIVE SUPERIOR ALIGNMENT: EXECUTIVE COMPENSATION 1 IS ROUGHLY TWO-THIRDS PERFORMANCE-BASED RESTRICTED STOCK GRANTS Growth in NFFO per share ~95% $5.4 billion 2 and total shareholder return AVERAGE SUPPORT OF SHAREHOLDER VALUE CREATION DOMINATE COMPENSATION CALCULATION EXECUTIVE COMPENSA
Slide 15: Investing in Communities – Giving Back
INVESTING IN COMMUNITIES – GIVING BACK MPT MADE MORE THAN $10 MILLION IN CONTRIBUTIONS TO 200+ DIFFERENT GROUPS IN 2021 Mobile Medical Disaster Relief WHERE WE FOCUS OUR GIVING Birmingham Alabama United States Where we have 229 Our Headquarters City Our Home State facilities in 32 states Europe Aust
Slide 16: Appendix: Normalized and Adjusted Funds from Operations
APPENDIX NORMALIZED AND ADJUSTED FUNDS FROM OPERATIONS Investors and analysts following the real estate industry utilize funds from operations, or FFO, as a supplemental performance measure. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally
Slide 17: Normalized and Adjusted Funds from Operations Reconciliation
NORMALIZED AND ADJUSTED FUNDS FROM OPERATIONS RECONCILIATION (in thousands, except per share data) For the Year Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 FFO information: Net income attributable to MPT common shareholders $ 89,899 $ 96,991 $ 50,523 $ 139,598 $ 225,048 $ 28
Slide 18: 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 March 31, 2022 Total Assets $ 6 ,419 $ 9,020 $ 8,844 $ 1 4,467 $ 16,829 $ 20,520 $ 19
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