BIRMINGHAM, Ala.--(BUSINESS WIRE)--Medical Properties Trust, Inc. (NYSE: MPW) today announced it has acquired the real estate of an acute care hospital in New Jersey and the real estate and, indirectly 9.9% of the operations, of a long term acute care hospital (LTACH) in the Dallas area.
The Company purchased for approximately $58.0 million the real estate of a 6-story, 278-bed acute care hospital in the New Jersey area of metropolitan New York, and leased the facility to the operator under a 15-year lease, with six 5-year extension options. The operator is an affiliate of a private hospital operating company that acquired the hospital in 2008.
Separately, the Company acquired for $23.5 million the real estate of the 60-bed Atrium Medical Center at Corinth in the Dallas area, an LTACH that was completed in 2009. An MPT affiliate invested approximately $6.5 million in a joint venture arrangement with an affiliate of Vibra Healthcare that will manage and has acquired a 51% interest in the operations of the facility. MPT’s interest in the joint venture is approximately 19%. The former operators of the hospital, comprised primarily of local physicians, will maintain ownership of 49% of the operating entity.
“With today’s announcements, we have committed more than $175 million in investments so far in 2011, and approximately $380 million since our April 2010 refinancing transactions,” said Edward K. Aldag, Jr., chairman, president and CEO of Medical Properties Trust, Inc. Aldag further noted that based solely on the existing portfolio of assets and capital structure, Company management expects normalized funds from operations to range between $0.77 and $0.81 per share on an annualized basis. “This estimated normalized FFO range does not include revenue, if any, that may result from additional acquisitions in 2011, which we expect will exceed another $175 million,” said Aldag.
Normalized funds from operations is a non-GAAP measure and a reconciliation of Normalized FFO to net income can be found in the Company’s previous earnings releases at www.medicalpropertiestrust.com.
The Company also announced that it has completed the previously announced acquisitions of the real estate assets of Alvarado Medical Center in San Diego and a Kansas City area LTACH operated by RehabCare.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a Birmingham, Alabama based self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. These facilities include inpatient rehabilitation hospitals, long-term acute care hospitals, regional acute care hospitals, ambulatory surgery centers and other single-discipline healthcare facilities, such as heart hospitals and orthopedic hospitals. For more information, please visit the Company’s website at www.medicalpropertiestrust.com.
The statements in this press release that are forward looking are based on current expectations and actual results or future events may differ materially. Words such as "expects," "believes," "anticipates," "intends," "will," "should” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results of the Company or future events to differ materially from those expressed in or underlying such forward-looking statements, including without limitation: the capacity of the Company’s tenants to meet the terms of their agreements; annual Normalized FFO per share; the amount of acquisitions of healthcare real estate, if any; the repayment of debt arrangements; statements concerning the additional income to the Company as a result of ownership interests in certain hospital operations and the timing of such income; the restructuring of the Company’s investments in non-revenue producing properties; the payment of future dividends, if any; completion of additional debt arrangements; and additional investments; national and economic, business, real estate and other market conditions; the competitive environment in which the Company operates; the execution of the Company's business plan; financing risks; the Company's ability to maintain its status as a REIT for federal income tax purposes; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally or healthcare real estate in particular. For further discussion of the factors that could affect outcomes, please refer to the "Risk factors" section of the Company's Form 10-K for the year ended December 31, 2009, as amended, and as updated by our subsequently filed Quarterly Reports on Form 10-Q and our other SEC filings. Except as otherwise required by the federal securities laws, the Company undertakes no obligation to update the information in this press release.