Medical Properties Trust, Inc. (NYSE: MPW) announced
today that it has made a $40 million first mortgage loan on all of the
real estate and certain other assets of the Alliance Hospital in
Odessa, Texas. Built in 2003, Alliance Hospital is a 78-bed acute care
hospital whose physicians concentrate in cardiovascular, orthopedic,
urologic and acute care treatments, among other disciplines.
This is the second investment transaction that MPT has completed in the fourth quarter, according to Edward K. Aldag, Jr., MPT's chairman, president and CEO, who reiterated the Company's acquisition goals. "We have previously disclosed that we expected to acquire as much as $100 million in hospital assets during 2005's fourth quarter," Mr. Aldag noted. "With the Alliance transaction, we have surpassed $61 million toward that target, and we remain optimistic that we will acquire another $25 million in assets before year-end as well as $10 million more soon thereafter. We remain right on track with our acquisition plans."
In describing the Alliance Hospital transaction, Aldag added, "This investment demonstrates the value of our management team's unique expertise in healthcare operations and hospital management in creating opportunities that are only available to us. We started working with the Alliance doctors almost 18 months ago to develop a real estate strategy that takes advantage of their unique position in their market, their physician specialties, and the hospital's long-term growth plans and capital requirements."
Terms and conditions of the loan are similar to those of other MPT sale/leaseback transactions. Specifically, the loan is payable interest only for a term of 15 years, with principal due at the end of the term. The loan interest rate will increase annually by an amount that is expected to provide an average annual yield of approximately 13%. The loan may be prepaid after year seven and before year eleven only upon payment of a yield maintenance premium and may be prepaid thereafter. Under certain circumstances related to a sale of the tenant, prepayment with yield maintenance may be made prior to year seven.
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 and community hospitals, women's and children's hospitals, skilled nursing facilities, ambulatory surgery centers, and other single-discipline healthcare facilities, such as heart hospitals, orthopedic hospitals and cancer centers.
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, which include statements concerning loan terms and interest rates, prepayment options and yield maintenance premiums, and anticipated future acquisitions and investments. Such 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: national and local economic, business, real estate and other market conditions; the competitive environment in which the Company operates; the execution of the Company's business plan; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally or the healthcare real estate industry in particular. For further discussion of the factors that could affect outcomes, please refer to the "Risk Factors" section of the Company's final prospectus for its initial public offering. Except as otherwise required by the federal securities laws, the Company undertakes no obligation to update the information in this press release.
This is the second investment transaction that MPT has completed in the fourth quarter, according to Edward K. Aldag, Jr., MPT's chairman, president and CEO, who reiterated the Company's acquisition goals. "We have previously disclosed that we expected to acquire as much as $100 million in hospital assets during 2005's fourth quarter," Mr. Aldag noted. "With the Alliance transaction, we have surpassed $61 million toward that target, and we remain optimistic that we will acquire another $25 million in assets before year-end as well as $10 million more soon thereafter. We remain right on track with our acquisition plans."
In describing the Alliance Hospital transaction, Aldag added, "This investment demonstrates the value of our management team's unique expertise in healthcare operations and hospital management in creating opportunities that are only available to us. We started working with the Alliance doctors almost 18 months ago to develop a real estate strategy that takes advantage of their unique position in their market, their physician specialties, and the hospital's long-term growth plans and capital requirements."
Terms and conditions of the loan are similar to those of other MPT sale/leaseback transactions. Specifically, the loan is payable interest only for a term of 15 years, with principal due at the end of the term. The loan interest rate will increase annually by an amount that is expected to provide an average annual yield of approximately 13%. The loan may be prepaid after year seven and before year eleven only upon payment of a yield maintenance premium and may be prepaid thereafter. Under certain circumstances related to a sale of the tenant, prepayment with yield maintenance may be made prior to year seven.
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 and community hospitals, women's and children's hospitals, skilled nursing facilities, ambulatory surgery centers, and other single-discipline healthcare facilities, such as heart hospitals, orthopedic hospitals and cancer centers.
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, which include statements concerning loan terms and interest rates, prepayment options and yield maintenance premiums, and anticipated future acquisitions and investments. Such 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: national and local economic, business, real estate and other market conditions; the competitive environment in which the Company operates; the execution of the Company's business plan; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally or the healthcare real estate industry in particular. For further discussion of the factors that could affect outcomes, please refer to the "Risk Factors" section of the Company's final prospectus for its initial public offering. Except as otherwise required by the federal securities laws, the Company undertakes no obligation to update the information in this press release.