Earnings release
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NEWS RELEASE MPT Reports Third Quarter Results 2026-10-29 Completed Previously Announced Transactions that Provided Approximately $680 Million in Asset Sale Proceeds and Signi cantly Extended Debt Maturities BIRMINGHAM, Ala.--(BUSINESS WIRE)-- Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPT) today announced nancial and operating results for the third quarter ended September 30, 2026, as well as certain events occurring subsequent to quarter end. Net income of $0.34 and Normalized Funds from Operations (“NFFO”) of $0.11 for the 2026 third quarter, all on a per share basis; Completed the previously announced private o ering of approximately $2.4 billion of secured notes, the proceeds of which were used to repay existing debt, including the 2026 notes as well as approximately 50% of the 2027 notes, resulting in a gain of $70 million in the quarter; Completed the sales of certain assets which resulted in approximately $680 million in cash proceeds in the third quarter, representing an aggregate $158 million gain; and Paid a regular quarterly dividend of $0.09 per share in October 2026. Edward K. Aldag, Jr., Chairman, President and Chief Executive O cer, said, “Our results this quarter demonstrate the decisive steps we have taken to strengthen our balance sheet and create greater exibility to further reduce debt and pursue selective growth opportunities. As healthcare providers around the world seek new solutions to capital challenges, our business model is more important than ever and we are well positioned to create long-term value for our shareholders. “We are closely monitoring operations at HSA as they navigate continued revenue cycle management challenges 1
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that precluded payment of September rent, reducing our NFFO by two cents during the quarter. HSA recently engaged a leading management services provider, Ovation Healthcare, to oversee operations across the portfolio and improve billings and collections.” Included in the nancial tables accompanying this press release is information about the Company’s assets and liabilities, operating results, and reconciliations of net income (loss) to NFFO, including per share amounts, all on a basis comparable to 2025 results. PORTFOLIO UPDATE MPT has total assets of approximately $14.4 billion, including $8.3 billion of general acute facilities, $2.4 billion of behavioral health facilities and $1.6 billion of post-acute facilities. As of September 30, 2026, MPT’s portfolio included 365 properties and approximately 37,000 licensed beds leased to or mortgaged by 52 hospital operating companies across the United States, as well as in the United Kingdom, Switzerland, Germany, Spain, Finland, Colombia, Italy and Portugal. As previously disclosed, during the quarter, the Company sold its remaining interest in ve hospitals in Utah for approximately $174 million. Additionally, the Company sold its interest in the real estate of two hospitals in Idaho to a liates of Intermountain Health, an investment grade not-for-pro t healthcare system, for approximately $371 million. The sales prices for each of these transactions signi cantly exceeded the Company’s original investments, again demonstrating the overall value of its portfolio of hospital real estate. Moreover, these and other recent transactions have provided $680 million in proceeds that are available for repayment of debt and other balance sheet improvement. The Company continues to expect portfolio cash rents in excess of $1.0 billion in 2027, even after reduction of the rental income associated with assets sold in the third quarter. In addition, this estimate includes conservative assumptions about rental income associated with cash basis tenants, including HSA, which continues to be challenged by revenue collection and for whom the Company has recently provided additional working capital support during the quarter. OPERATING RESULTS Net income for the third quarter ended September 30, 2026 was $202 million ($0.34 per share), compared to a net loss of ($78 million) (($0.13) per share) in the year earlier period. NFFO for the third quarter ended September 30, 2026 was $64 million ($0.11 per share), compared to $77 million ($0.13 per share) in the year earlier period. CONFERENCE CALL AND WEBCAST 2
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The Company has scheduled a conference call and webcast for October 29, 2026, at 11:00 a.m. Eastern Time to present the Company’s nancial and operating results for the quarter ended September 30, 2026. The dial-in numbers for the conference call are 833-461-5787 (Toll-Free) and 585-542-9983, and the Meeting ID is 336661409 to join the conference. The conference call and webcast replay will also be available via webcast in the Investor Relations section of the Company’s website, www.mpt.com. The webcast replay will be available for one year. The Company’s supplemental information package for the current period will also be available on the Company’s website in the Investor Relations section. The Company uses, and intends to continue to use, the Investor Relations page of its website, which can be found at www.mpt.com, as a means of disclosing material nonpublic information and complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the Investor Relations page, in addition to following our press releases, SEC lings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document. 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 365 facilities and approximately 37,000 licensed beds in nine countries and across three continents as of September 30, 2026. MPT’s nancing 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.mpt.com. Forward-Looking Statements 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 identi ed 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, prospects, asset sales and the expected proceeds and gains therefrom, re nancings (including the timing of, and expected proceeds from, such re nancings), tenant arrangements (including master leases and lease restructurings, and the expected timing, 3
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anticipated rent and nancial impact thereof), among others. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results or future events to di er materially from those expressed in or underlying such forward-looking statements, including, but not limited to: (i) the risk that projected rents may be lower than anticipated or realized later than expected; (ii) the risk that the timing, outcome and terms of the causes of action of Prospect Medical Holdings, Inc. (“Prospect”), which serve as collateral for debtor-in- possession and other fundings provided by MPT that remain outstanding, and of other recoveries in respect of the Company’s remaining Prospect investment, will not be consistent with those anticipated by the Company; (iii) our success in implementing our business strategy and our ability to identify, underwrite, nance, consummate and integrate acquisitions and investments; (iv) the risk that previously announced or contemplated property sales, loan repayments, and other capital recycling transactions do not occur as anticipated or at all; (v) 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; (vi) MPT’s ability to obtain or modify the terms of debt nancing on attractive terms or at all, as a result of changes in interest rates and other factors, which may adversely impact our ability to pay down, re nance, restructure or extend our indebtedness, including extending our 2026 credit facility, as it becomes due, or pursue acquisition and development opportunities; (vii) the ability of our tenants, operators and borrowers to satisfy their obligations under their respective contractual arrangements with us; (viii) the ability of our tenants and operators to operate pro tably and generate positive cash ow, remain solvent, comply with applicable laws, rules and regulations in the operation of our properties, to deliver high-quality services, to attract and retain quali ed personnel and to attract patients; (ix) the risk that we are unable to monetize our investments in certain tenants at full value within a reasonable time period or at all; (x) the risk that the operations of our tenants will be negatively impacted by changes to Medicaid funding introduced by the OBBBA; (xi) the risks and uncertainties of litigation or other regulatory proceedings; and (xii) the impact of any governmental actions a ecting our properties. The risks described above are not exhaustive and additional factors could adversely a ect our business and nancial performance, including the risk factors discussed under the section captioned “Risk Factors” in our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, and as may be updated in our other lings 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 not to 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. MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Amounts in thousands, except for per share data) St b302026D b312025 4
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September 30, 2026December 31, 2025 Assets (Unaudited)(A) Real estate assetsLand, buildings and improvements, intangible lease assets, and other$ 11,921,015$ 12,205,687Investment in nancing leases 384,419 421,684 Mortgage loans 131,726 123,651 Gross investment in real estate assets 12,437,16012,751,022 Accumulated depreciation and amortization(1,768,594) (1,663,056) Net investment in real estate assets 10,668,56611,087,966Cash and cash equivalents 599,282 540,859Interest and rent receivables 19,137 19,210Straight-line rent receivables 944,326 881,452Investments in unconsolidated real estate joint ventures1,045,4751,399,777Investments in unconsolidated operating entities320,740 322,179Other loans 283,015 186,292 Other assets 513,155 564,040 Total Assets $14,393,696$15,001,775 Liabilities and Equity LiabilitiesDebt, net $ 9,260,257$ 9,697,835Accounts payable and accrued expenses398,703 549,105Deferred revenue 16,930 19,289 Obligations to tenants and other lease liabilities95,380 128,297 Total Liabilities 9,771,27010,394,526EquityPreferred stock, $0.001 par value. Authorized 10,000 shares; no sharesoutstanding - -Common stock, $0.001 par value. Authorized 750,000 shares; issued andoutstanding - 597,157 shares at September 30, 2026 and 597,008shares at December 31, 2025 597 597Additional paid-in capital 8,583,1018,573,396Retained de cit (4,066,730) (4,136,011) Accumulated other comprehensive income104,405 168,213 Total Medical Properties Trust, Inc. stockholders' equity4,621,3734,606,195 Non-controlling interests 1,053 1,054 Total Equity 4,622,4264,607,249 Total Liabilities and Equity $14,393,696$15,001,775 (A) Financials have been derived from the prior year audited nancial statements. MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES Consolidated Statements of Income(Unaudited) (Amounts in thousands, except for per share data)For the Three Months EndedFor the Nine Months Ended September 30,2026 September 30,2025 September 30,2026 September 30,2025 Revenues Rent billed $ 195,305$ 181,001$ 596,225$ 524,051Straight-line rent 35,699 36,405103,203116,197Income from nancing leases10,099 9,944 30,244 29,772 Interest and other income 9,037 10,172 31,816 31,660 Total revenues 250,140237,522761,488701,680 Expenses Interest 153,091132,395421,683377,905Real estate depreciation and amortization70,343 66,993209,513198,282Property-related (A) 11,399 8,993 32,541 26,891 General and administrative 29,036 37,734 96,012105,842 Total expenses 263,869246,115759,749708,920 Other income (expense) Gain (loss) on sale of real estate157,766(9,115) 163,4384,156Real estate and other impairment charges, net(23,870) (81,761) (59,670) (159,284)Earnings from equity interests6,988 34,403 34,135 73,713Debt re nancing and unutilized nancing bene t (costs)69,524 (14) 69,524 (3,629) Other (including fair value adjustments on securities)15,424 (1,498) 11,011(171,138) Total other income (expense)225,832(57,985) 218,438(256,182) Income (loss) before income tax212,103(66,578) 220,177(263,422) Income tax (expense) bene t(10,026) (10,872) 12,719 (30,112) Net income (loss) 202,077(77,450) 232,896(293,534) Net income attributable to non-controlling interests(494) (280) (1,081) (828) Nti (l )ttibtbltMPT 5
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Net income (loss) attributable to MPT commonstockholders $ 201,583$ (77,730)$ 231,815$ (294,362) Earnings per common share - basic and diluted:Net income (loss) attributable to MPT commonstockholders $ 0.34$ (0.13)$ 0.39$ (0.49) Weighted average shares outstanding - basic597,157601,136597,611600,867Weighted average shares outstanding - diluted597,162601,136597,613600,867Dividends declared per common share$ 0.09$ 0.08$ 0.27$ 0.24 (A) Includes $2.7 million and $2.3 million of ground lease and other expenses (such as property taxes and insurance) paid directly by us andreimbursed by our tenants for the three months ended September 30, 2026 and 2025, respectively, and $9.0 million and $9.3 million for the ninemonths ended September 30, 2026 and 2025, respectively. MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES Reconciliation of Net Income (Loss) to Funds From Operations(Unaudited) (Amounts in thousands, except for per share data)For the Three Months EndedFor the Nine Months Ended September 30,2026 September 30,2025 September 30,2026 September 30,2025 FFO information:Net income (loss) attributable to MPT commonstockholders $ 201,583$ (77,730)$ 231,815$ (294,362) Participating securities' share in earnings(353) (256) (1,221) (597) Net income (loss), less participating securities' share in earnings$ 201,230$ (77,986) $ 230,594$ (294,959) Depreciation and amortization85,530 82,242257,433240,465(Gain) loss on sale of real estate(155,452) 9,115 (159,990) (4,156) Real estate impairment charges12,123 78,677 22,765126,645 Funds from operations$ 143,431$ 92,048$ 350,802$ 67,995 Other impairment charges, net13,756 6,976 39,549 40,487Litigation, bankruptcy and other costs2,413 (1,125) 5,480 11,078Share-based compensation (fair value adjustments) (A)(8,075) 3,457 (21,362) 3,444Non-cash fair value adjustments(18,206) (12,066) (21,539) 123,370Tax rate changes and other 21 (12,091) (45,134) (10,970) Debt re nancing and unutilized nancing (bene t) costs(69,524) 14 (69,524) 4,273 Normalized funds from operations$ 63,816$ 77,213$ 238,272$ 239,677 Certain non-cash and related recovery information: Share-based compensation (A)$ 8,457$ 8,885$ 27,178$ 27,420Debt costs amortization $ 4,814$ 7,445$ 19,480$ 20,435Non-cash rent and interest revenue (B)$ 469$ 349$ 1,096$ 349Cash recoveries of non-cash rent and interest revenue (C)$ - $ 556$ 210$ 1,620Straight-line rent revenue from operating and nance leases$ (39,252) $ (39,688) $ (110,979) $ (124,945) Per diluted share data:Net income (loss), less participating securities' sharein earnings $ 0.34$ (0.13)$ 0.39$ (0.49) Depreciation and amortization0.14 0.14 0.43 0.40(Gain) loss on sale of real estate(0.26) 0.01 (0.27) (0.01) Real estate impairment charges0.02 0.13 0.03 0.21 Funds from operations$ 0.24$ 0.15$ 0.58$ 0.11 Other impairment charges, net0.02 0.01 0.07 0.06Litigation, bankruptcy and other costs0.01 - 0.01 0.02Share-based compensation (fair value adjustments) (A)(0.01) 0.01 (0.03) 0.01Non-cash fair value adjustments(0.03) (0.02) (0.04) 0.21Tax rate changes and other - (0.02) (0.07) (0.02) Debt re nancing and unutilized nancing (bene t) costs(0.12) - (0.12) 0.01 Normalized funds from operations$ 0.11$ 0.13$ 0.40$ 0.40 Certain non-cash and related recovery information: Share-based compensation (A)$ 0.01$ 0.01$ 0.05$ 0.05Debt costs amortization $ 0.01$ 0.01$ 0.03$ 0.03Non-cash rent and interest revenue (B)$ - $ - $ - $ -Cash recoveries of non-cash rent and interest revenue (C)$ - $ - $ - $ -Straight-line rent revenue from operating and nance leases$ (0.07) $ (0.07) $ (0.19) $ (0.21)Notes:Investors and analysts following the real estate industry utilize funds from operations ("FFO") as a supplemental performance measure. FFO, re ectingthe assumption that real estate asset values rise or fall with market conditions, principally adjusts for the e ects of GAAP depreciation andamortization of real estate assets, which assumes that the value of real estate diminishes predictably over time. We compute FFO in accordance withthe de nition provided by the National Association of Real Estate Investment Trusts, or Nareit, which represents net income (loss) (computed in d ithGAAP)ldi i (l ) l f l tt di i th l tt t l l ttd iti d 6
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accordance with GAAP), excluding gains (losses) on sales of real estate and impairment charges on real estate assets, plus real estate depreciation andamortization, including amortization related to in-place lease intangibles, and after adjustments for unconsolidated partnerships and joint ventures.In addition to presenting FFO in accordance with the Nareit de nition, we disclose normalized FFO, which adjusts FFO for items that relate tounanticipated or non-core events or activities or accounting changes that, if not noted, would make comparison to prior period results and marketexpectations less meaningful to investors and analysts. We believe that the use of FFO, combined with the required GAAP presentations, improves theunderstanding of our operating results among investors and the use of normalized FFO makes comparisons of our operating results with priorperiods and other companies more meaningful. While FFO and normalized FFO are relevant and widely used supplemental measures of operating and nancial performance of REITs, they should not be viewed as a substitute measure of our operating performance since the measures do not re ecteither depreciation and amortization costs or the level of capital expenditures and leasing costs (if any not paid by our tenants) to maintain theoperating performance of our properties, which can be signi cant economic costs that could materially impact our results of operations. FFO andnormalized FFO should not be considered an alternative to net income (loss) (computed in accordance with GAAP) as indicators of our results ofoperations or to cash ow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity.Certain line items above (such as depreciation and amortization) include our share of such income/expense from unconsolidated joint ventures. Theseamounts are included with all activity of our equity interests in the "Earnings from equity interests" line on the consolidated statements of income.(A) Total share-based compensation expense is $0.4 million and $12.3 million for the three months ended September 30, 2026 and 2025, respectively,and $5.8 million and $30.9 million for the nine months ended September 30, 2026 and 2025, respectively, (including certain awards that are to besettled in cash). Cash-settled awards are typically recorded in accordance with GAAP at fair value and remeasured at each balance sheet date untilsettlement. The resulting uctuations, which are primarily driven by changes in our stock price rather than operational performance, can introducesigni cant volatility in our earnings. To enhance comparability and provide a more stable view of performance over time, NFFO re ects additionalexpense of $8.1 million and a bene t of $3.5 million in the three months ended September 30, 2026 and 2025, respectively, and additional expense of$21.4 million and a bene t of $3.4 million in the nine months ended September 30, 2026 and 2025, respectively, to arrive at total share-basedcompensation expense using grant date fair value for all awards (including cash-settled awards) of $8.5 million and $8.9 million for the three monthsended September 30, 2026 and 2025, respectively, and $27.2 million and $27.4 million for the nine months ended September 30, 2026 and 2025,respectively.(B) Includes revenue accrued during the period but not received in cash, such as deferred rent, payment-in-kind ("PIK") interest or other accruals.(C) Includes cash received to satisfy previously accrued non-cash revenue, such as the cash receipt of previously deferred rent or PIK interest. Charles Lambert Senior Vice President of Finance & Treasurer Medical Properties Trust, Inc. (205) 397-8897 clambert@mpt.com Source: MPT 7