BIRMINGHAM, Ala.–(BUSINESS WIRE)–Medical Properties Belief, Inc. (the Firm or MPT) (NYSE: MPW) at this time issued the under assertion in response to Prospect Medical (TASE:) Group’s (Prospect) resolution to begin an in-court restructuring course of underneath Chapter 11 of the U.S. Chapter Code.
As mentioned throughout MPT’s third quarter 2024 earnings, whereas Prospect’s California amenities have reported quantity development and improved protection traits in 2024, its total liquidity has been adversely impacted by stalled gross sales processes throughout varied East Coast markets, together with Rhode Island the place MPT has no real interest in the actual property. Prospect has not paid any lease to MPT since June 2024, its Connecticut and Pennsylvania lessees and mortgagors have made solely minimal funds over the previous two years, and MPT has been recognizing all revenues from Prospect utilizing money foundation accounting since 2023.
The Firm’s precedence throughout the restructuring course of is to guard MPT’s funding in Prospect’s California hospitals. MPT additionally expects to help efforts by Prospect to make use of the Chapter 11 course of to finish a profitable sale of Prospect’s Connecticut amenities.
About Medical Properties (NYSE:) Belief, Inc.
Medical Properties Belief, Inc. is a self-advised actual property funding belief shaped in 2003 to accumulate and develop net-leased hospital amenities. From its inception in Birmingham, Alabama, the Firm has grown to turn into one of many world’s largest house owners of hospital actual property with 402 amenities and roughly 40,000 licensed beds in 9 nations and throughout three continents as of September 30, 2024. MPT’s financing mannequin facilitates acquisitions and recapitalizations and permits operators of hospitals to unlock the worth of their actual property property to fund facility enhancements, know-how upgrades and different investments in operations. For extra data, please go to the Firm’s web site at www.medicalpropertiestrust.com.
Ahead-Wanting Statements
This press launch consists of forward-looking statements inside the that means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Alternate Act of 1934, as amended. Ahead-looking statements can typically be recognized by means of forward-looking phrases corresponding to could, will, would, may, anticipate, intend, plan, estimate, goal, anticipate, consider, aims, outlook, steerage or different related phrases, and embrace statements relating to our methods, aims, asset gross sales and different liquidity transactions (together with the usage of proceeds thereof), anticipated re-tenanting of vacant amenities and any associated regulatory approvals, and anticipated outcomes from Prospect’s Chapter 11 restructuring course of. Ahead-looking statements contain recognized and unknown dangers and uncertainties that will trigger our precise outcomes or future occasions to vary materially from these expressed in or underlying such forward-looking statements, together with, however not restricted to: (i) the danger that the end result and phrases of the chapter restructuring of Prospect is not going to be in line with these anticipated by the Firm; (ii) the danger that beforehand introduced or contemplated property gross sales, mortgage repayments, and different capital recycling transactions don’t happen as anticipated or in any respect; (iii) the danger that MPT shouldn’t be in a position to attain its leverage, liquidity and value of capital aims inside an affordable time interval or in any respect; (iv) MPT’s capability to acquire debt financing on engaging phrases or in any respect, on account of adjustments in rates of interest and different components, which can adversely impression its capability to pay down, refinance, restructure or prolong its indebtedness because it turns into due, or pursue acquisition and growth alternatives; (v) the power of our tenants, operators and debtors to fulfill their obligations underneath their respective contractual preparations with us; (vi) the power of our tenants and operators to function profitably and generate constructive money stream, stay solvent, adjust to relevant legal guidelines, guidelines and laws within the operation of our properties, to ship high-quality providers, to draw and retain certified personnel and to draw sufferers; (vii) the danger that we’re unable to monetize our investments in sure tenants at full worth inside an affordable time interval or in any respect, (viii) our success in implementing our enterprise technique and our capability to establish, underwrite, finance, consummate and combine acquisitions and investments; and (ix) the dangers and uncertainties of litigation or different regulatory proceedings.
The dangers described above will not be exhaustive and extra components may adversely have an effect on our enterprise and monetary efficiency, together with the danger components mentioned underneath the part captioned Danger Elements in our most up-to-date Annual Report on Type 10-Okay and our Type 10-Q, and as could also be up to date in our different filings with the SEC. Ahead-looking statements are inherently unsure and precise efficiency or outcomes could range materially from any forward-looking statements and the assumptions on which these statements are based mostly. Readers are cautioned to not place undue reliance on forward-looking statements as predictions of future occasions. We disclaim any accountability to replace such forward-looking statements, which converse solely as of the date on which they had been made.
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Drew Babin, CFA, CMA
Head of Monetary Technique and Investor Relations
Medical Properties Belief, Inc.
(646) 884-9809
[email protected]
Supply: Medical Properties Belief, Inc.
