MEDICAL PROPERTIES TRUST INC Q2 FY2024 earnings call

Capital Allocation Strategy: Exceeded initial $2 billion liquidity target in 2024, generating $2.5 billion in total liquidity, repaid all 2024 debt, and focused on debt paydown. ### Steward Healthcare Restructuring: Complicated process with Massachusetts market causing delays. Eight Massachusetts properties are 50% owned by MPT. Sought to collaborate with Steward and Commonwealth to keep hospitals functioning. Believed viable paths existed to keep hospitals open but negative commentary scared away operators. Now expect positive results in remaining markets. ### Portfolio Trends: Operators across global portfolio had positive volume and EBITDARM coverage trends. U.K. and Europe benefited from increased private hospital demand. U.S. portfolio excluding Steward and Prospect had strong general acute revenue, LifePoint Health saw EBITDARM improvement, and Prospect's California facilities showed positive momentum. ### Financial Results: GAAP net loss of $0.54 per share and normalized FFO of $0.23 per share for Q2 2024. Included cash revenue from Steward and Prospect. Non-cash charges related to impairment of Massachusetts partnership. Formed JV with leading investment firm for Utah hospitals.

General acute and behavioral health facilities, representing approximately 75% of total assets, showed notable improvements. The post-acute segment, including inpatient rehabilitation and LTACH portfolios, remained flat. In the U.K. and Continental Europe, demand for private hospitals increased; Circle Health was recognized as Private Hospital Group of the Year, and Priory in the U.K. and MEDIAN in Germany delivered steady performance. In the U.S. portfolio, excluding Steward and Prospect, general acute revenue was strong with higher admissions, acuity mix, and reimbursement rates. LifePoint Health recorded highest admissions in nearly three years, and Prospect's California facilities saw positive momentum on admissions. The U.S. portfolio has more than 50 unique tenants across care settings.

Liquidity: Exceeded $2 billion liquidity target in 2024, generated $2.5 billion in total liquidity. ### Steward: Expect positive results in remaining markets based on real estate agreements with new operators. ### Credit Facility: Amended revolving credit agreement to provide flexibility during Steward's restructuring, reduced revolving credit commitment, adjusted financial covenants. ### Dividend: Quarterly dividend limited to $0.08 per share per quarter in cash, with Board to determine additional alternatives if needed.

Steward Bankruptcy: Uncertainties in timing and outcomes of asset sales and re-tenanting. Potential for impairments of Steward-related investments. ### Massachusetts Market: Negative commentary scared away operators, affecting sales process in Massachusetts. ### Confidentiality: Under court-confidential orders limiting ability to discuss specific details of Steward's restructuring.

Q: Expand on expectations for positive results in Steward's re-leasing and percent of assets sold from $2.3 billion real estate investments?

A: Ed Aldag stated under court confidentiality orders, couldn't provide specific details; only that there will be a combination of sales and re-tenanting.

Q: Thoughts on quarterly cash rent and interest payment from Steward for Q3?

A: Steven Hamner said it's rapidly changing in bankruptcy procedures, no visibility into evolution of assets sold or re-tenanted, so couldn't give precise prediction.

Q: Update on Prospect, Yale sale, and PHP monetization?

A: Edward Aldag said no update on Connecticut Yale sell, PHP expects final bids this month for sales.