MEDICAL PROPERTIES TRUST INC Q4 FY2024 earnings call

• Entered 2024 with plan to execute $2B in liquidity transactions, exceeded by executing ~$3B, then issued over $2.5B in 7-year secured bonds. - Prospect Medical Group filed Chapter 11, reached global settlement for asset sales. - Portfolio highlights: New operators ramping operations, European segments performing well, US segments showing growth. - Capital market activities: Completed over $2.5B in senior secured notes offerings, amended credit facility to share collateral pool with secured notes.

Hospital fundamentals are strengthening with admissions and surgical volumes growing. New operators in the US: Contractual cash rent ramps up between Jan 2025 and Oct 2026 to an aggregate quarterly run rate of ~$40 million. European segments: Circle Health in UK benefits from high private medical insurance utilization; Priory in UK has steady performance with double-digit revenue and EBITDARM growth; median in Germany and Swiss Medical Network have solid results. US segments: Earnest Health has excellent EBITDARM coverage; LifePoint Health shows top-line growth; Scion Health has high single-digit revenue growth.

• Liquidity covers all upcoming debt maturities through 2026. - Contractual cash rent from new tenants is scheduled to ramp up to ~$40 million per quarter by Oct 2026, adding ~$0.06 per share. - Expect continued execution of strategies, strong FFO generation from operations.

• Uncertainty in Prospect asset resolutions with various assets potentially resolving differently. - Healthcare reform in Colombia affecting mortgage investments, with ~$19M impairment. - Potential impacts of Medicaid changes on tenants, though healthcare is believed to continue.

Q: Provide additional color on Prospect. Specifically, is the plan to sell all real estate previously leased to Prospect?

A: It's uncertain. There are several buckets of assets including California, which will likely resolve separately in different manners.

Q: Are there any other asset sales currently evaluating?

A: No pending sales announced, some small pending sales under $100M.

Q: With new tenants, has enough time passed for them to be cash flow positive?

A: Most are cash flow positive, ramp up not ratable as each lessee has different terms.

Q: Catch up payment from a smaller tenant, should we expect continued payments?

A: From the 1% tenant, there will be continued payments, they are current.

Q: Percentage of encumbered versus unencumbered assets?

A: ~$6B encumbered, remainder unencumbered.

Q: Thoughts on Medicaid cuts worst case vs best case?

A: Hard to give color, but believe healthcare will continue as is.

Q: Covenant in credit agreement?

A: Full access to line, encumbrance up to 40% of assets.