Medical Properties Trust Comments On Steward Health Care Restructuring

Medical Properties Trust Comments on Steward Health Care Restructuring
May 6, 2024
BIRMINGHAM, Ala.--(BUSINESS WIRE)--May 6, 2024-- Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW) today issued the
following statement in response to Steward Health Care’s decision to commence an in-court restructuring process under Chapter 11 of the U.S.
Bankruptcy Code.
MPT has approved the funding of $75 million in debtor-in-possession financing. The Company has not committed to providing additional funding
beyond this amount. MPT expects Steward to use the financing to ensure continuity of patient care while accelerating the re-tenanting of hospitals to
new operators.
Any debtor-in-possession financing terms are subject to approval of the bankruptcy court.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From
its inception in Birmingham, Alabama, the Company has grown to become one of the world’s largest owners of hospital real estate with 439 facilities
and approximately 43,000 licensed beds in nine countries and across three continents as of December 31, 2023. MPT’s financing model facilitates
acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements,
technology upgrades and other investments in operations. For more information, please visit the Company’s website at
www.medicalpropertiestrust.com.
This press release 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 forward-looking words such
as “may”, “will”, “would”, “could”, “expect”, “intend”, “plan”, “estimate”, “target”, “anticipate”, “believe”, “objectives”, “outlook”, “guidance” or other similar
words, and include statements regarding our strategies, objectives, future expansion and development activities, asset sales and other liquidity
transactions, expected returns on investments and expected financial performance. Forward-looking statements involve known and unknown risks
and uncertainties that may cause our actual results or future events to differ materially from those expressed in or underlying such forward-looking
statements, including, but not limited to: (i) the risk that Steward’s bankruptcy restructuring does not result in MPT recovering deferred rent or its other
investments in Steward at full value, within a reasonable time period or at all; (ii) macroeconomic conditions, including due to geopolitical conditions
and instability, which may lead to a disruption of or lack of access to the capital markets, disruptions and instability in the banking and financial services
industries, rising inflation and movements in currency exchange rates; (iii) the risk that previously announced or contemplated property sales, loan
repayments, and other capital recycling transactions do not occur as anticipated or at all; (iv) the risk that MPT is not able to attain its leverage, liquidity
and cost of capital objectives within a reasonable time period or at all; (v) MPT’s ability to obtain debt financing on attractive terms or at all, as a result
of changes in interest rates and other factors, which may adversely impact its ability to pay down, refinance, restructure or extend its indebtedness as
it becomes due, or pursue acquisition and development opportunities; (vi) the ability of our tenants, operators and borrowers to satisfy their obligations
under their respective contractual arrangements with us; (vii) the economic, political and social impact of, and uncertainty relating to, the potential
impact from health crises (like COVID-19), which may adversely affect MPT’s and its tenants’ business, financial condition, results of operations and
liquidity; (viii) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate acquisitions
and investments; (ix) the nature and extent of our current and future competition; (x) international, national and local economic, real estate and other
market conditions, which may negatively impact, among other things, the financial condition of our tenants, lenders and institutions that hold our cash
balances, and may expose us to increased risks of default by these parties; (xi) factors affecting the real estate industry generally or the healthcare
real estate industry in particular; (xii) our ability to maintain our status as a REIT for income tax purposes in the U.S. and U.K.; (xiii) federal and state
healthcare and other regulatory requirements, as well as those in the foreign jurisdictions where we own properties; (xiv) the value of our real estate
assets, which may limit our ability to dispose of assets at attractive prices or obtain or maintain equity or debt financing secured by our properties or on
an unsecured basis; (xv) the ability of our tenants and operators to operate profitably and generate positive cash flow, remain solvent, comply with
applicable laws, rules and regulations in the operation of our properties, to deliver high-quality services, to attract and retain qualified personnel and to
attract patients; (xvi) potential environmental contingencies and other liabilities; (xvii) the risk that the expected sale of three Connecticut hospitals
currently leased to Prospect does not occur; (xviii) the risk that MPT is unable to monetize its investment in Prospect Medical Holdings, Inc. at full
value within a reasonable time period or at all; and (xix) the cooperation of our joint venture partners, including adverse developments affecting the
financial health of such joint venture partners or the joint venture itself; and (xx) the risks and uncertainties of litigation or other regulatory proceedings.
The risks described above are not exhaustive and additional factors could adversely affect our business and financial performance, including the risk
factors discussed under the section captioned “Risk Factors” in our most recent Annual Report on Form 10-K, as may be updated in our other filings
with the SEC. Forward-looking statements are inherently uncertain and actual performance or outcomes may vary materially from any forward-looking
statements and the assumptions on which those statements are based. Readers are cautioned to not place undue reliance on forward-looking
statements as predictions of future events. We disclaim any responsibility to update such forward-looking statements, which speak only as of the date
on which they were made.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240506866138/en/
Drew Babin, CFA, CMA

Senior Managing Director of Corporate Communications
Medical Properties Trust, Inc.
(646) 884-9809
[email protected]
Source: Medical Properties Trust, Inc.

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About Medical Properties Trust, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240506866138/en/

Drew Babin, CFA, CMA

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