Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 07, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MPW | |
Entity Registrant Name | MEDICAL PROPERTIES TRUST INC. | |
Entity Central Index Key | 1,287,865 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 208,914,827 | |
MPT Operating Partnership, L.P. [Member] | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | MPT OPERATING PARTNERSHIP, L.P. | |
Entity Central Index Key | 1,524,607 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Real estate assets | ||
Land, buildings and improvements, and intangible lease assets | $ 2,720,011 | $ 2,172,775 |
Mortgage loans | 437,587 | 397,594 |
Net investment in direct financing leases | 455,020 | 439,516 |
Gross investment in real estate assets | 3,612,618 | 3,009,885 |
Accumulated depreciation and amortization | (231,909) | (202,627) |
Net investment in real estate assets | 3,380,709 | 2,807,258 |
Cash and cash equivalents | 45,904 | 144,541 |
Interest and rent receivables | 56,792 | 41,137 |
Straight-line rent receivables | 68,927 | 59,128 |
Other loans | 548,865 | 573,167 |
Other assets | 124,928 | 122,105 |
Total Assets | 4,226,125 | 3,747,336 |
Liabilities | ||
Debt, net | 2,262,861 | 2,201,654 |
Accounts payable and accrued expenses | 130,505 | 112,623 |
Deferred revenue | 27,541 | 27,207 |
Lease deposits and other obligations to tenants | 9,341 | 23,805 |
Total Liabilities | $ 2,430,248 | $ 2,365,289 |
Equity / Capital | ||
Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstanding | ||
Common stock, $0.001 par value. Authorized 250,000 shares; issued and outstanding - 207,804 shares at June 30, 2015 and 172,743 shares at December 31, 2014 | $ 208 | $ 172 |
Limited Partners: | ||
Additional paid in capital | 2,250,894 | 1,765,381 |
Distributions in excess of net income | (395,078) | (361,330) |
Accumulated other comprehensive loss | (59,885) | (21,914) |
Treasury shares, at cost | (262) | (262) |
Total Equity / Capital | 1,795,877 | 1,382,047 |
Total Liabilities and Equity / Capital | 4,226,125 | 3,747,336 |
MPT Operating Partnership, L.P. [Member] | ||
Real estate assets | ||
Land, buildings and improvements, and intangible lease assets | 2,720,011 | 2,172,775 |
Mortgage loans | 437,587 | 397,594 |
Net investment in direct financing leases | 455,020 | 439,516 |
Gross investment in real estate assets | 3,612,618 | 3,009,885 |
Accumulated depreciation and amortization | (231,909) | (202,627) |
Net investment in real estate assets | 3,380,709 | 2,807,258 |
Cash and cash equivalents | 45,904 | 144,541 |
Interest and rent receivables | 56,792 | 41,137 |
Straight-line rent receivables | 68,927 | 59,128 |
Other loans | 548,865 | 573,167 |
Other assets | 124,928 | 122,105 |
Total Assets | 4,226,125 | 3,747,336 |
Liabilities | ||
Debt, net | 2,262,861 | 2,201,654 |
Accounts payable and accrued expenses | 84,550 | 74,195 |
Deferred revenue | 27,541 | 27,207 |
Lease deposits and other obligations to tenants | 9,341 | 23,805 |
Payable due to Medical Properties Trust, Inc. | 45,565 | 38,038 |
Total Liabilities | 2,429,858 | 2,364,899 |
Limited Partners: | ||
Accumulated other comprehensive loss | (59,885) | (21,914) |
Total Equity / Capital | 1,796,267 | 1,382,437 |
Total Liabilities and Equity / Capital | 4,226,125 | 3,747,336 |
MPT Operating Partnership, L.P. [Member] | Common Units [Member] | ||
Limited Partners: | ||
Limited Partners Capital | 1,837,577 | 1,390,296 |
MPT Operating Partnership, L.P. [Member] | General Partner [Member] | ||
Equity / Capital | ||
General Partner - issued and outstanding - 2,073 units at June 30, 2015 and 1,722 units at December 31, 2014 | 18,575 | 14,055 |
MPT Operating Partnership, L.P. [Member] | LTIP Units [Member] | ||
Limited Partners: | ||
Limited Partners Capital | $ 0 | $ 0 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 207,804,000 | 172,743,000 |
Common stock, shares outstanding | 207,804,000 | 172,743,000 |
General Partner [Member] | MPT Operating Partnership, L.P. [Member] | ||
General partner, units issued | 2,073,000 | 1,722,000 |
General partner, units outstanding | 2,073,000 | 1,722,000 |
LTIP Units [Member] | MPT Operating Partnership, L.P. [Member] | ||
LTIP Units, shares issued | 292,000 | 292,000 |
LTIP Units, shares outstanding | 292,000 | 292,000 |
Common Units [Member] | MPT Operating Partnership, L.P. [Member] | ||
Limited Partners, units issued | 205,731,000 | 171,021,000 |
Limited Partners, units outstanding | 205,731,000 | 171,021,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | ||||
Rent billed | $ 53,893 | $ 45,928 | $ 106,994 | $ 88,889 |
Straight-line rent | 5,252 | 3,178 | 9,980 | 5,366 |
Income from direct financing leases | 12,808 | 12,263 | 25,363 | 24,479 |
Interest and fee income | 27,848 | 15,191 | 53,425 | 30,915 |
Total revenues | 99,801 | 76,560 | 195,762 | 149,649 |
Expenses | ||||
Real estate depreciation and amortization | 14,956 | 12,442 | 29,712 | 26,131 |
Impairment charges | 29,631 | 50,128 | ||
Property-related | 530 | (38) | 881 | 700 |
General and administrative | 10,642 | 8,206 | 21,547 | 17,165 |
Acquisition expenses | 25,809 | 2,535 | 32,048 | 3,047 |
Total operating expenses | 51,937 | 52,776 | 84,188 | 97,171 |
Operating income | 47,864 | 23,784 | 111,574 | 52,478 |
Other income (expense) | ||||
Interest and other income (expense) | 225 | 19 | (571) | (30) |
Earnings from equity and other interests | 1,853 | 686 | 1,956 | 905 |
Interest expense | (26,890) | (24,362) | (53,318) | (45,974) |
Debt refinancing costs | (290) | (238) | (290) | |
Income tax (expense) benefit | (563) | (40) | (938) | 16 |
Net other expense | (25,375) | (23,987) | (53,109) | (45,373) |
Income (loss) from continuing operations | 22,489 | (203) | 58,465 | 7,105 |
Income (loss) from discontinued operations | (2) | |||
Net income (loss) | 22,489 | (203) | 58,465 | 7,103 |
Net income (loss) attributable to non-controlling interests | (82) | (161) | (65) | |
Net income (loss) attributable to MPT common stockholders | $ 22,407 | $ (203) | $ 58,304 | $ 7,038 |
Earnings per common share - basic and diluted | ||||
Income (loss) from continuing operations attributable to MPT common stockholders | $ 0.11 | $ 0.28 | $ 0.04 | |
Income (loss) from discontinued operations attributable to MPT common stockholders | 0 | $ 0 | 0 | 0 |
Net income (loss) attributable to MPT common stockholders | $ 0.11 | $ 0.28 | $ 0.04 | |
Weighted average shares / units outstanding: | ||||
Basic | 208,071 | 171,718 | 205,515 | 167,846 |
Diluted | 208,640 | 172,369 | 206,127 | 168,459 |
Dividends declared per common share / unit | $ 0.22 | $ 0.21 | $ 0.44 | $ 0.42 |
MPT Operating Partnership, L.P. [Member] | ||||
Revenues | ||||
Rent billed | $ 53,893 | $ 45,928 | $ 106,994 | $ 88,889 |
Straight-line rent | 5,252 | 3,178 | 9,980 | 5,366 |
Income from direct financing leases | 12,808 | 12,263 | 25,363 | 24,479 |
Interest and fee income | 27,848 | 15,191 | 53,425 | 30,915 |
Total revenues | 99,801 | 76,560 | 195,762 | 149,649 |
Expenses | ||||
Real estate depreciation and amortization | 14,956 | 12,442 | 29,712 | 26,131 |
Impairment charges | 29,631 | 50,128 | ||
Property-related | 530 | (38) | 881 | 700 |
General and administrative | 10,642 | 8,206 | 21,547 | 17,165 |
Acquisition expenses | 25,809 | 2,535 | 32,048 | 3,047 |
Total operating expenses | 51,937 | 52,776 | 84,188 | 97,171 |
Operating income | 47,864 | 23,784 | 111,574 | 52,478 |
Other income (expense) | ||||
Interest and other income (expense) | 225 | 19 | (571) | (30) |
Earnings from equity and other interests | 1,853 | 686 | 1,956 | 905 |
Interest expense | (26,890) | (24,362) | (53,318) | (45,974) |
Debt refinancing costs | (290) | (238) | (290) | |
Income tax (expense) benefit | (563) | (40) | (938) | 16 |
Net other expense | (25,375) | (23,987) | (53,109) | (45,373) |
Income (loss) from continuing operations | 22,489 | (203) | 58,465 | 7,105 |
Income (loss) from discontinued operations | (2) | |||
Net income (loss) | 22,489 | (203) | 58,465 | 7,103 |
Net income (loss) attributable to non-controlling interests | (82) | (161) | (65) | |
Net income (loss) attributable to MPT common stockholders | $ 22,407 | $ (203) | $ 58,304 | $ 7,038 |
Earnings per common share - basic and diluted | ||||
Income (loss) from continuing operations attributable to MPT common stockholders | $ 0.11 | $ 0.28 | $ 0.04 | |
Income (loss) from discontinued operations attributable to MPT common stockholders | 0 | $ 0 | 0 | 0 |
Net income (loss) attributable to MPT common stockholders | $ 0.11 | $ 0.28 | $ 0.04 | |
Weighted average shares / units outstanding: | ||||
Basic | 208,071 | 171,718 | 205,515 | 167,846 |
Diluted | 208,640 | 172,369 | 206,127 | 168,459 |
Dividends declared per common share / unit | $ 0.22 | $ 0.21 | $ 0.44 | $ 0.42 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income (loss) | $ 22,489 | $ (203) | $ 58,465 | $ 7,103 |
Other comprehensive income: | ||||
Unrealized gain on interest rate swap | 730 | 486 | 1,315 | 1,206 |
Foreign currency translation gain (loss) | 20,307 | 73 | (39,286) | 46 |
Total comprehensive income | 43,526 | 356 | 20,494 | 8,355 |
Comprehensive income attributable to non-controlling interests | (82) | (161) | (65) | |
Comprehensive income attributable to MPT common stockholders (Operating partnership partners) | 43,444 | 356 | 20,333 | 8,290 |
MPT Operating Partnership, L.P. [Member] | ||||
Net income (loss) | 22,489 | (203) | 58,465 | 7,103 |
Other comprehensive income: | ||||
Unrealized gain on interest rate swap | 730 | 486 | 1,315 | 1,206 |
Foreign currency translation gain (loss) | 20,307 | 73 | (39,286) | 46 |
Total comprehensive income | 43,526 | 356 | 20,494 | 8,355 |
Comprehensive income attributable to non-controlling interests | (82) | (161) | (65) | |
Comprehensive income attributable to MPT common stockholders (Operating partnership partners) | $ 43,444 | $ 356 | $ 20,333 | $ 8,290 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities | ||
Net income | $ 58,465 | $ 7,103 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 30,564 | 26,715 |
Straight-line rent revenue | (9,980) | (6,316) |
Straight-line rent write-off | 950 | |
Impairment charges | 50,128 | |
Direct financing lease interest accretion | (3,279) | (3,256) |
Share / Unit-based compensation | 5,645 | 4,433 |
Amortization and write-off of deferred financing costs and debt discount | 2,770 | 2,484 |
Other adjustments | (2,383) | (8,406) |
Changes in | ||
Interest and rent receivable | (15,685) | (9,064) |
Accounts payable and accrued expenses | 21,327 | (14,516) |
Net cash provided by operating activities | 87,444 | 50,255 |
Investing activities | ||
Cash paid for acquisitions and other related investments | (562,633) | (115,000) |
Principal received on loans receivable | 354,952 | 6,829 |
Investment in loans receivable | (347,768) | (5,601) |
Construction in progress and other | (86,053) | (55,159) |
Net cash used for investing activities | (641,502) | (168,931) |
Financing activities | ||
Revolving credit facilities, net | 80,586 | (105,000) |
Additions to term debt | 425,000 | |
Payments of term debt | (140) | (100,132) |
Distributions paid | (84,487) | (71,809) |
Proceeds from sale of common shares / units, net of offering costs | 479,902 | 128,332 |
Lease deposits and other obligations to tenants | (14,453) | 4,910 |
Debt issuance costs paid and other financing activities | (662) | (11,496) |
Net cash provided by financing activities | 460,746 | 269,805 |
Increase (decrease) in cash and cash equivalents for period | (93,312) | 151,129 |
Effect of exchange rate changes | (5,325) | (85) |
Cash and cash equivalents at beginning of period | 144,541 | 45,979 |
Cash and cash equivalents at end of period | 45,904 | 197,023 |
Interest paid | 52,130 | 41,907 |
Supplemental schedule of non-cash financing activities: | ||
Distributions declared, unpaid | 46,026 | 36,277 |
MPT Operating Partnership, L.P. [Member] | ||
Operating activities | ||
Net income | 58,465 | 7,103 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 30,564 | 26,715 |
Straight-line rent revenue | (9,980) | (6,316) |
Straight-line rent write-off | 950 | |
Impairment charges | 50,128 | |
Direct financing lease interest accretion | (3,279) | (3,256) |
Share / Unit-based compensation | 5,645 | 4,433 |
Amortization and write-off of deferred financing costs and debt discount | 2,770 | 2,484 |
Other adjustments | (2,383) | (8,406) |
Changes in | ||
Interest and rent receivable | (15,685) | (9,064) |
Accounts payable and accrued expenses | 21,327 | (14,516) |
Net cash provided by operating activities | 87,444 | 50,255 |
Investing activities | ||
Cash paid for acquisitions and other related investments | (562,633) | (115,000) |
Principal received on loans receivable | 354,952 | 6,829 |
Investment in loans receivable | (347,768) | (5,601) |
Construction in progress and other | (86,053) | (55,159) |
Net cash used for investing activities | (641,502) | (168,931) |
Financing activities | ||
Revolving credit facilities, net | 80,586 | (105,000) |
Additions to term debt | 425,000 | |
Payments of term debt | (140) | (100,132) |
Distributions paid | (84,487) | (71,809) |
Proceeds from sale of common shares / units, net of offering costs | 479,902 | 128,332 |
Lease deposits and other obligations to tenants | (14,453) | 4,910 |
Debt issuance costs paid and other financing activities | (662) | (11,496) |
Net cash provided by financing activities | 460,746 | 269,805 |
Increase (decrease) in cash and cash equivalents for period | (93,312) | 151,129 |
Effect of exchange rate changes | (5,325) | (85) |
Cash and cash equivalents at beginning of period | 144,541 | 45,979 |
Cash and cash equivalents at end of period | 45,904 | 197,023 |
Interest paid | 52,130 | 41,907 |
Supplemental schedule of non-cash financing activities: | ||
Distributions declared, unpaid | $ 46,026 | $ 36,277 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization Medical Properties Trust, Inc., a Maryland corporation, was formed on August 27, 2003, under the Maryland General Corporation Law for the purpose of engaging in the business of investing in, owning, and leasing commercial real estate. Our operating partnership subsidiary, MPT Operating Partnership, L.P., (the “Operating Partnership”) through which we conduct all of our operations, was formed in September 2003. Through another wholly-owned subsidiary, Medical Properties Trust, LLC, we are the sole general partner of the Operating Partnership. At present, we directly own substantially all of the limited partnership interests in the Operating Partnership and have elected to report our required disclosures and that of the Operating Partnership on a combined basis except where material differences exist. We have operated as a real estate investment trust (“REIT”) since April 6, 2004, and accordingly, elected REIT status upon the filing in September 2005 of the calendar year 2004 federal income tax return. Accordingly, we will generally not be subject to U.S. federal income tax, provided that we continue to qualify as a REIT and our distributions to our stockholders equal or exceed our taxable income. Certain activities we undertake must be conducted by entities which we elected to be treated as taxable REIT subsidiaries (“TRSs”). Our TRSs are subject to both U.S. federal and state income taxes. For our properties located outside the United States, we are subject to local taxes; however, we do not expect to incur additional taxes in the United States as such income will flow through our REIT. Our primary business strategy is to acquire and develop real estate and improvements, primarily for long-term lease to providers of healthcare services such as operators of general acute care hospitals, inpatient physical rehabilitation hospitals, long-term acute care hospitals, surgery centers, centers for treatment of specific conditions such as cardiac, pulmonary, cancer, and neurological hospitals, and other healthcare-oriented facilities. We also make mortgage and other loans to operators of similar facilities. In addition, we may obtain profits or equity interests in our tenants, from time to time, in order to enhance our overall return. We manage our business as a single business segment. All of our properties are located in the United States and Europe. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Unaudited Interim Condensed Consolidated Financial Statements For information about significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014. During the six months ended June 30, 2015, there were no material changes to these policies. Recent Accounting Developments: Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. On April 1, 2015, the FASB proposed deferring the effective date by one year to December 15, 2017, for annual reporting periods beginning after that date. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of December 15, 2016. We do not expect this standard to have a significant impact on our financial results. as a substantial portion of our revenue consists of rental income from leasing arrangements, which are specifically excluded from ASU 2014-09. Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. Amendments to the Consolidation Analysis In February 2015, the FASB issued an ASU 2015-02 that modifies the evaluation of whether limited partnerships and similar legal entities are VIEs, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. The guidance is effective for fiscal years beginning after December 15, 2015, but early adoption is permitted. Variable Interest Entities At June 30, 2015, we had loans to and/or equity investments in certain variable interest entities (“VIEs”), which are also tenants of our facilities, including Ernest Health, Inc. (“Ernest”). We have determined that we are not the primary beneficiary of these VIEs. The carrying value and classification of the related assets and maximum exposure to loss as a result of our involvement with these VIEs are presented below at June 30, 2015 (in thousands): VIE Type Maximum Loss Asset Type Classification Carrying Loans, net $ 277,941 Mortgage and other loans $ 224,482 Equity investments $ 61,323 Other assets $ 6,292 (1) Our maximum loss exposure related to loans with VIEs represents our current aggregate gross carrying value of the loan plus accrued interest and any other related assets (such as rent receivables), less any liabilities. Our maximum loss exposure related to our equity investment in VIEs represents the current carrying values of such investment plus any other related assets (such as rent receivables) less any liabilities. (2) Carrying amount reflects the net book value of our loan or equity interest only in the VIE. For the VIE types above, we do not consolidate the VIE because we do not have the ability to control the activities (such as the day-to-day healthcare operations of our borrower or investees) that most significantly impact the VIE’s economic performance. As of June 30, 2015, we were not required to provide any material financial support through a liquidity arrangement or otherwise to our unconsolidated VIEs, including circumstances in which it could be exposed to further losses (e.g., cash short falls). Typically, our loans are collateralized by assets of the borrower (some assets of which are on the premises of facilities owned by us) and further supported by limited guarantees made by certain principals of the borrower. See Note 3 for additional description of the nature, purpose and activities of our more significant VIEs and interests therein. |
Real Estate and Lending Activit
Real Estate and Lending Activities | 6 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Real Estate and Lending Activities | 3. Real Estate and Lending Activities Acquisitions 2015 Activity MEDIAN Transaction Update On April 29, 2015, we entered into a series of definitive agreements with Median Kliniken S.à r.l., (“MEDIAN”), a German provider of post-acute and acute rehabilitation services, to acquire the real estate assets of 32 hospitals owned by MEDIAN for an aggregate purchase price of approximately €688 million. Upon acquisition, each property became subject to a master lease between us and MEDIAN providing for the leaseback of the property to MEDIAN. The master lease has an initial term of 27 years and provides for an initial GAAP lease rate of 9.3%, with annual escalators at the greater of one percent or 70% of the German consumer price index. We expect to acquire three additional facilities from MEDIAN in a substantially similar sale-leaseback transaction subject to the master lease, resulting in an aggregate purchase price for all acquired facilities of approximately €705 million. MEDIAN is owned by an affiliate of Waterland Private Equity Fund V C.V. (“Waterland”), which acquired 94.9% of the outstanding equity interests in MEDIAN, and by a subsidiary of our operating partnership, which acquired the remaining 5.1% of the outstanding equity interests in MEDIAN, each in December 2014. In December 2014, we provided interim acquisition loans to affiliates of Waterland and MEDIAN in connection with Waterland’s acquisition of its stake in MEDIAN in an aggregate amount of approximately €425 million. In addition, we made further loans to MEDIAN during the first half of 2015 in an aggregate amount of approximately €240 million, which were used by MEDIAN to repay existing debt on properties we have acquired or expect to acquire. We may make additional loans to MEDIAN for the purpose of repaying existing property debt, up to a total aggregate amount of all loans to Waterland and MEDIAN in the amount of approximately €705 million. Closing of the sale-leaseback transactions, which began in the second quarter of 2015, is subject to customary real estate, regulatory and other closing conditions, including waiver of any statutory pre-emption rights by local municipalities and antitrust clearance. At each closing, the purchase price for each facility will be reduced and offset against the interim loans made to affiliates of Waterland and MEDIAN as described above and against the amount of any debt assumed or repaid by us in connection with the closing. As of June 30, 2015, we have closed on 17 of the 35 properties for an aggregate amount of €317 million ($354 million). As of August 1, 2015, we have closed on 30 of the 35 (including the three additional facilities) properties subject to the agreements for a cumulative purchase price to date of approximately €627 million. Other Acquisitions On June 16, 2015, we acquired the real estate of two facilities in Lubbock, Texas, a 60-bed inpatient rehabilitation hospital and a 37-bed long term acute care hospital, for an aggregate purchase price of $31.5 million. We entered into a 20-year lease with Ernest for the rehabilitation hospital, which provides for three five-year extension options, and separately entered into a lease with Ernest for the long-term acute care hospital that has a final term ending December 31, 2034. In connection with the transaction, we funded an acquisition loan to Ernest of approximately $12.0 million. Ernest will operate the rehabilitation hospital in a joint venture with Covenant Health System, while the long term acute care hospital will continue to be operated by Fundamental Health under a new sublease with Ernest. On February 27, 2015, we acquired an inpatient rehabilitation hospital in Weslaco, Texas for $10.7 million leased to Ernest pursuant to the 2012 master lease which has a remaining 17-year fixed term and three five year extension options. This lease provides for consumer-priced-indexed annual rent increases, subject to a floor and a cap. In addition we agreed to fund an acquisition loan in the amount of $5 million. On February 13, 2015, we acquired two general acute care hospitals in the Kansas City area for $110 million. Affiliates of Prime Healthcare Services, Inc. (“Prime”) is the tenant and operator pursuant to a new master lease that has similar terms and security enhancements as the other master lease agreements entered into in 2013. This master lease has a 10 year initial fixed term with two extension options of five years each. The lease provides for consumer-price-indexed annual rent increases, subject to a specified floor. In addition, we agreed to fund a mortgage loan in the amount of $40 million, which has a 10-year term. 2014 Activity On March 31, 2014, we acquired a general acute care hospital and an adjacent parcel of land for an aggregate purchase price of $115 million from a joint venture of LHP Hospital Group, Inc. and Hackensack University Medical Center Mountainside. The facility was simultaneously leased back to the seller under a lease with a 15-year initial term with a 3-year extension option, followed by a further 12-year extension option at fair market value. The lease provides for consumer price-indexed annual rent increases, subject to a specified floor and ceiling. The lease includes a customary right of first refusal with respect to a subsequent proposed sale of the facility. As part of these acquisitions, we acquired the following assets: 2015 2014 Assets Acquired Land and land improvements $ 21,591 $ 8,477 Building 473,425 99,640 Intangible lease assets — subject to amortization (weighted average useful life 15 years) — 6,883 Mortgage loans 40,000 — Net investments in direct financing leases 10,700 — Other loans 16,917 — Total assets acquired $ 562,633 $ 115,000 The purchase price allocations attributable to the 2015 acquisitions are preliminary. When all relevant information is obtained, resulting changes, if any, to our provisional purchase price allocation will be retrospectively adjusted to reflect new information obtained about the facts and circumstances that existed as of the respective acquisition dates that, if known, would have affected the measurement of the amounts recognized as of those dates. From the respective acquisition dates, the properties and mortgage loans acquired in 2015 contributed $4.2 million and $3.5 million of revenue and income (excluding related acquisition expenses), respectively, for the three months ended June 30, 2015. From the respective acquisition dates, the properties and mortgage loans acquired in 2015 contributed $6.2 million and $4.9 million of revenue and income (excluding related acquisition expenses), respectively, for the six months ended June 30, 2015. In addition, we incurred $22.6 million and $26.7 million of acquisition related costs on the 2015 acquisitions for the three and six months ended June 30, 2015, respectively. From the respective acquisition dates in 2014, the 2014 acquisitions contributed $2.3 million and $1.6 million of revenue and income (excluding related acquisition and financing expenses), respectively, for the three and six months ended June 30, 2014. In addition, we incurred $0.4 million of acquisition related costs on the 2014 acquisitions for the three and six months ended June 30, 2014. Pro Forma Information The following unaudited supplemental pro forma operating data is presented for the three and six months ended June 30, 2015 and 2014, as if each acquisition (including completed development projects) was completed on January 1, 2014. Supplemental pro forma earnings were adjusted to exclude acquisition-related costs on consummated deals incurred. The unaudited supplemental pro forma operating data is not necessarily indicative of what the actual results of operations would have been assuming the transactions had been completed as set forth above, nor do they purport to represent our results of operations for future periods (in thousands, except per share/unit amounts). For the Three June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Total revenues $ 108.8 $ 106.2 $ 218.7 $ 211.5 Net income $ 50.2 $ 20.6 $ 99.8 $ 44.6 Net income per share/unit — diluted $ 0.21 $ 0.09 $ 0.42 $ 0.19 Development Activities During the first six months of 2015, we completed construction and began recording rental income on the following facilities: • First Choice ER (a subsidiary of Adeptus Health) – We completed seven acute care facilities for this tenant during 2015. These facilities are leased pursuant to the master lease entered into in 2014 and are cross-defaulted with the original master lease executed with First Choice ER in 2013. One property is leased pursuant to the master lease entered into in 2015 and is cross-defaulted with the master leases entered into in 2014 and 2013. • UAB Medical West – This acute care facility and medical office building located in Birmingham, Alabama is leased to Medical West, an affiliate of The University of Alabama at Birmingham. On June 16, 2015, we entered into definitive agreements to acquire the real estate of a general acute care hospital under development located in Spain, for an aggregate purchase and development price to us of approximately €21.4 million. The acquisition will be effected through a newly-formed joint venture between us and clients of AXA Real Estate, in which we will own a 50% interest. Upon completion, the facility will be leased to a Spanish operator of acute care hospitals, pursuant to a long-term lease. Closing of the transaction which is expected during the second half of 2015, is subject to customary real estate, regulatory and other closing conditions. On May 5, 2015, we entered into an agreement to finance the development of and lease an inpatient rehabilitation facility in Toledo, Ohio for $19.2 million, which will be leased to Ernest under the 2012 master lease. The facility is expected to be completed in the second quarter of 2016. In April 2015, we executed an agreement with Adeptus Health that provides for the acquisition and development of general acute care hospitals and free standing emergency facilities with an aggregate commitment of $250 million. These facilities will be leased to Adeptus Health pursuant to the terms of the 2014 master lease agreement that has a 15-year initial term with three extension options of five years each that provides for annual rent increases based on changes in the consumer price index with a 2% minimum. See table below for a status update on our current development projects (in thousands): Property Location Property Type Operator Commitment Costs Incurred as of 06/30/15 Estimated Completion Date First Choice ER- Aurora Aurora, CO Acute Care Hospital Adeptus Health $ 5,273 $ 1,614 3Q 2015 First Choice ER- Carrollton Carrollton, TX Acute Care Hospital Adeptus Health 35,820 30,692 3Q 2015 First Choice ER- Conroe Houston, TX Acute Care Hospital Adeptus Health 6,110 3,150 3Q 2015 First Choice ER- Gilbert Gilbert, AZ Acute Care Hospital Adeptus Health 6,500 4,291 3Q 2015 First Choice ER- McKinney McKinney, TX Acute Care Hospital Adeptus Health 4,750 2,582 3Q 2015 First Choice ER- Chandler-Ray Chandler, AZ Acute Care Hospital Adeptus Health 5,261 1,741 4Q 2015 First Choice ER- Cinco Ranch Katy, TX Acute Care Hospital Adeptus Health 5,105 162 4Q 2015 First Choice ER- Highland Village Highland Village, TX Acute Care Hospital Adeptus Health 4,884 361 4Q 2015 First Choice ER- Parker Parker, CO Acute Care Hospital Adeptus Health 6,868 1,843 4Q 2015 First Choice ER- Frisco Eldorado Frisco, TX Acute Care Hospital Adeptus Health 5,124 50 1Q 2016 First Choice ER- Helotes Helotes, TX Acute Care Hospital Adeptus Health 7,530 2,251 2Q 2016 Rehabilitation Hospital of Northwest Ohio Toledo, OH Inpatient Rehabilitation Hospital Ernest Health 19,212 1,649 2Q 2016 First Choice ER-Vintage Preserve Houston, TX Acute Care Hospital Adeptus Health 45,961 6,376 3Q 2016 First Choice Emergency Rooms Various Acute Care Hospital Adeptus Health 231,649 — Various $ 390,047 $ 56,762 Leasing Operations All of our leases are accounted for as operating leases except for the master lease of 15 Ernest facilities and five Prime facilities which are accounted for as direct financing leases (“DFLs”). The components of our net investment in DFLs consisted of the following (dollars in thousands): As of June 30, As of December 31, Minimum lease payments receivable $ 1,627,898 $ 1,607,024 Estimated residual values 225,872 211,888 Less: Unearned income (1,398,750 ) (1,379,396 ) Net investment in direct financing leases $ 455,020 $ 439,516 Florence facility On March 6, 2013, the tenant of our $27.1 million facility in Phoenix, Arizona filed for Chapter 11 bankruptcy. At June 30, 2015, we have approximately $1.1 million of receivables outstanding but the tenant continues to pay us in accordance with bankruptcy orders. In addition, we have a letter of credit for approximately $1.2 million to cover any rent and other monetary payments not paid. Although no assurances can be made that we will not have any impairment charges in the future, we believe our investment in Florence at June 30, 2015 is fully recoverable. Gilbert facility In the first quarter of 2014, the tenant of our facility in Gilbert, Arizona filed for Chapter 11 bankruptcy; however, we sent notice of termination of the lease prior to the bankruptcy filing. As a result of the lease terminating, we recorded a charge of approximately $1 million to reserve against the straight-line rent receivables. In addition, we accelerated the amortization of the related lease intangible asset resulting in $1.1 million of additional expense in the 2014 first quarter. The tenant has continued to pay its monetary obligations, and we have agreed to the terms of an amended lease upon the tenant’s bankruptcy exit. Although no assurances can be made that we will not have any impairment charges or write-offs of receivables in the future, we believe our real estate investment in Gilbert of $13.9 million at June 30, 2015 is fully recoverable. Loans The following is a summary of our loans (in thousands): As of June 30, 2015 As of December 31, 2014 Mortgage loans $ 437,587 $ 397,594 Acquisition loans 503,012 525,136 Working capital and other loans 45,853 48,031 $ 986,452 $ 970,761 The increase in our mortgage loans is related to the two property acquisition with Prime. See “ Acquisition Our non-mortgage loans typically consist of loans to our tenants for acquisitions and working capital purposes. At June 30, 2015, acquisition loans includes our $114.4 million loans to Ernest plus $376.8 million related to the MEDIAN transaction. On March 1, 2012, pursuant to our convertible note agreement, we converted $1.7 million of our $5.0 million convertible note into a 9.9% equity interest in the operator of our Hoboken University Medical Center facility. At June 30, 2015, $3.3 million remains outstanding on the convertible note, and we retain the option, subject to regulatory approvals, to convert this remainder into 15.1% of equity interest in the operator. Concentrations of Credit Risk For the three months ended June 30, 2015 and 2014, revenue from affiliates of Prime (including rent and interest from mortgage loans) accounted for 25.9% and 27.9%, respectively, of total revenue. For the six months ended June 30, 2015 and 2014, revenue from affiliates of Prime (including rent and interest from mortgage loans) accounted for 25.5% and 28.5%, respectively, of total revenue. From an investment concentration perspective, assets leased and loaned to Prime represented 13.8% and 7.5%, respectively of our total assets, at June 30, 2015. Assets leased and loaned to Prime represented 12.6% and 7.4%, respectively, of our total assets at December 31, 2014. For the three and six months ended June 30, 2015, revenue from affiliates of MEDIAN accounted for 11.1% and 10.3% of total revenue, respectively. From an investment concentration perspective, MEDIAN represented 17.3% and 11.3% of our total assets at June 30, 2015 and December 31, 2014, respectively. For the three months ended June 30, 2015 and 2014, revenue from affiliates of Ernest (including rent and interest from mortgage and acquisition loans) accounted for 15.0% and 18.2%, respectively, of total revenue. For the six months ended June 30, 2015 and 2014, revenue from affiliates of Ernest (including rent and interest from mortgage and acquisition loans) accounted for 15.2% and 18.9%, respectively, of total revenue. From an investment concentration perspective, assets leased and loaned to Ernest represented 7.9% and 5.1%, respectively, of our total assets at June 30, 2015. Assets leased and loaned to Ernest represented 7.7% and 5.3%, respectively, of our total assets at December 31, 2014. On an individual property basis, we had no investment of any single property greater than 3% of our total assets as of June 30, 2015. From a global geographic perspective, approximately 75% of our total assets are in the United States while 25% reside in Europe (primarily in Germany) as of June 30, 2015. From a global geographic perspective, approximately 80% of our total assets are in the United States while 20% reside in Europe as of December 31, 2014. For the three months ended June 30, 2015 and 2014, revenue from our European investments was $18.1 million and $5.5 million, respectively. For the six months ended June 30, 2015 and 2014, revenue from our European investments was $34.4 million and $10.9 million, respectively. From a United States geographic perspective, investments located in Texas represented 19.8% of our total assets at June 30, 2015, compared to 20.2% at December 31, 2014. Investments located in California represented 12.9% of our total assets at June 30, 2015, compared to 14.6% at December 31, 2014. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt The following is a summary of our debt (dollar amounts in thousands): As of June 30, 2015 As of December 31, 2014 Balance Interest Rate Balance Interest Rate Revolving credit facility (A) $ 674,034 Variable $ 593,490 Variable 2006 Senior Unsecured Notes 125,000 Various 125,000 Various 2011 Senior Unsecured Notes 450,000 6.875 % 450,000 6.875 % 2012 Senior Unsecured Notes: Principal amount 350,000 6.375 % 350,000 6.375 % Unamortized premium 2,345 — 2,522 — 352,345 352,522 2013 Senior Unsecured Notes (B) 222,940 5.750 % 241,960 5.750 % 2014 Senior Unsecured Notes 300,000 5.500 % 300,000 5.500 % Term loans 138,542 Various 138,682 Various $ 2,262,861 $ 2,201,654 (A) As of June 30, 2015, we had €301.0 million of outstanding borrowings on the revolving credit facility, or $335.5 million based on the exchange rate in effect at June 30, 2015. (B) The change in balance from period to period is due to foreign currency fluctuations. These notes are Euro-denominated and reflect the exchange rate at June 30, 2015 and December 31, 2014, respectively. As of June 30, 2015, principal payments due for our debt (which exclude the effects of any premiums recorded) are as follows (in thousands): 2015 $ 142 2016 125,299 2017 320 2018 686,815 2019 125,000 Thereafter 1,322,940 Total $ 2,260,516 During the second quarter 2010, we entered into an interest rate swap to manage our exposure to variable interest rates by fixing $65 million of our 2006 Senior Unsecured Notes, which started July 31, 2011 (date on which the interest rate turned variable) through maturity date (or July 2016), at a rate of 5.507%. We also entered into an interest rate swap to fix $60 million of our 2006 Senior Unsecured Notes which started October 31, 2011 (date on which the related interest rate turned variable) through the maturity date (or October 2016) at a rate of 5.675%. The fair value of the interest rate swaps was $4.7 million and $6.0 million as of June 30, 2015 and December 31, 2014, respectively, which is reflected in accounts payable and accrued expenses on the consolidated balance sheets. We account for our interest rate swaps as cash flow hedges. Accordingly, the effective portion of changes in the fair value of our swaps is recorded as a component of accumulated other comprehensive income/loss on the balance sheet and reclassified into earnings in the same period, or periods, during which the hedged transactions effect earnings, while any ineffective portion is recorded through earnings immediately. We did not have any hedge ineffectiveness from inception of our interest rate swaps through June 30, 2015 and therefore, there was no income statement effect recorded during the three or six month periods ended June 30, 2015 or 2014. At June 30, 2015, we do not expect any of the current losses included in accumulated other comprehensive loss to be reclassified into earnings in the next 12 months. At June 30, 2015 and December 31, 2014, we have posted $2.5 million and $3.3 million of collateral related to our interest rate swaps, respectively, which is reflected in other assets on our consolidated balance sheets. Covenants Our debt facilities impose certain restrictions on us, including restrictions on our ability to: incur debts; create or incur liens; provide guarantees in respect of obligations of any other entity; make redemptions and repurchases of our capital stock; prepay, redeem or repurchase debt; engage in mergers or consolidations; enter into affiliated transactions; dispose of real estate or other assets; and change our business. In addition, the credit agreements governing our revolving credit facility and term loan limit the amount of dividends we can pay as a percentage of normalized adjusted funds from operations, as defined in the agreements, on a rolling four quarter basis. At June 30, 2015, the dividend restriction was 95% of normalized adjusted FFO. The indentures governing our senior unsecured notes also limit the amount of dividends we can pay based on the sum of 95% of funds from operations, proceeds of equity issuances and certain other net cash proceeds. Finally, our senior unsecured notes require us to maintain total unencumbered assets (as defined in the related indenture) of not less than 150% of our unsecured indebtedness. In addition to these restrictions, the revolving credit facility and term loan contain customary financial and operating covenants, including covenants relating to our total leverage ratio, fixed charge coverage ratio, mortgage secured leverage ratio, recourse mortgage secured leverage ratio, consolidated adjusted net worth, unsecured leverage ratio, and unsecured interest coverage ratio. This facility also contains customary events of default, including among others, nonpayment of principal or interest, material inaccuracy of representations and failure to comply with our covenants. If an event of default occurs and is continuing under the facility, the entire outstanding balance may become immediately due and payable. At June 30, 2015, we were in compliance with all such financial and operating covenants. |
Common Stock_Partners' Capital
Common Stock/Partners' Capital | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Common Stock/Partners' Capital | 5. Common Stock/Partners’ Capital Medical Properties Trust, Inc. On January 14, 2015, we completed an underwritten public offering of 34.5 million shares (including the exercise of the underwriters’ 30-day option to purchase an additional 4.5 million shares) of our common stock, resulting in net proceeds of approximately $480 million, after deducting estimated offering expenses. On March 11, 2014, we completed an underwritten public offering of 7.7 million shares of our common stock, resulting in net proceeds of approximately $100.2 million, after deducting estimated offering expenses. We also granted the underwriters a 30-day option to purchase up to an additional 1.2 million shares of common stock. The option, which was exercised in full, closed on April 8, 2014 and resulted in additional net proceeds of approximately $16 million. In January 2014, we put an at-the-market equity offering program in place, giving us the ability to sell up to $250 million of stock with a commission of 1.25%. During the first quarter of 2014, we sold 0.9 million shares of our common stock under our at-the-market equity offering program, at an average price of $13.21 per share resulting in total proceeds, net of commission, of $12.3 million. MPT Operating Partnership, L.P. At June 30, 2015, the Company has a 99.86% ownership interest in the Operating Partnership with the remainder owned by three other partners, two of whom are employees and one of whom is a director. During the six months ended June 30, 2015 and 2014, the partnership issued 34.5 million and 9.8 million units, respectively, in direct response to the common stock offerings by Medical Properties Trust, Inc. |
Stock Awards
Stock Awards | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Awards | 6. Stock Awards We adopted the 2013 Equity Incentive Plan (the “Equity Incentive Plan”) during second quarter of 2013, which authorizes the issuance of common stock options, restricted stock, restricted stock units, deferred stock units, stock appreciation rights, performance units and awards of interests in our Operating Partnership. The Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors. We have reserved 7,643,651 shares of common stock for awards under the Equity Incentive Plan for which 5,419,441 shares remain available for future stock awards as of June 30, 2015. We awarded the following stock awards during 2015 and 2014: Time-based awards Performance-based awards Multi-year Performance-based awards |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 7. Fair Value of Financial Instruments We have various assets and liabilities that are considered financial instruments. We estimate that the carrying value of cash and cash equivalents, and accounts payable and accrued expenses approximate their fair values. Included in our accounts payable and accrued expenses are our interest rate swaps, which are recorded at fair value based on Level 2 observable market assumptions using standardized derivative pricing models. We estimate the fair value of our interest and rent receivables using Level 2 inputs such as discounting the estimated future cash flows using the current rates at which similar receivables would be made to others with similar credit ratings and for the same remaining maturities. The fair value of our mortgage loans and working capital loans are estimated by using Level 2 inputs such as discounting the estimated future cash flows using the current rates which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. We determine the fair value of our senior unsecured notes (excluding our 2006 Senior Unsecured Notes) using Level 2 inputs such as quotes from securities dealers and market makers. We estimate the fair value of our 2006 Senior Unsecured Notes, our revolving credit facility, and term loans using Level 2 inputs based on the present value of future payments, discounted at a rate which we consider appropriate for such debt. Fair value estimates are made at a specific point in time, are subjective in nature, and involve uncertainties and matters of significant judgment. Settlement of such fair value amounts may not be possible and may not be a prudent management decision. The following table summarizes fair value estimates for our financial instruments (in thousands): June 30, 2015 December 31, 2014 Asset (Liability) Book Fair Book Fair Interest and rent receivables $ 56,792 $ 56,683 $ 41,137 $ 41,005 Loans (1) 771,284 801,457 773,311 803,824 Debt, net (2,262,861 ) (2,341,637 ) (2,201,654 ) (2,285,727 ) (1) Excludes loans related to Ernest since they are recorded at fair value and discussed below. Items Measured at Fair Value on a Recurring Basis Our equity interest in Ernest and related loans, which were acquired in 2012, are being measured at fair value on a recurring basis as we elected to account for these investments using the fair value option method. We have elected to account for these investments at fair value due to the size of the investments and because we believe this method is more reflective of current values. We have not made a similar election for other equity interests or loans made in or prior to 2015. At June 30, 2015, these amounts were as follows (in thousands): Asset Type Fair Cost Asset Type Mortgage loans $ 100,000 $ 100,000 Mortgage loans Acquisition loans 114,367 114,367 Other loans Other loans 801 801 Other loans Equity investments 3,300 3,300 Other assets $ 218,468 $ 218,468 Our mortgage loans with Ernest are recorded at fair value based on Level 3 inputs by discounting the estimated cash flows using the market rates which similar loans would be made to borrowers with similar credit ratings and the same remaining maturities. Our acquisition loans and equity investments in Ernest are recorded at fair value based on Level 3 inputs, by using a discounted cash flow model, which requires significant estimates of our investee such as projected revenue and expenses and appropriate consideration of the underlying risk profile of the forecast assumptions associated with the investee. We classify these loans and equity investments as Level 3, as we use certain unobservable inputs to the valuation methodology that are significant to the fair value measurement, and the valuation requires management judgment due to the absence of quoted market prices. For these cash flow models, our observable inputs include use of a capitalization rate, discount rate (which is based on a weighted-average cost of capital), and market interest rates, and our unobservable input includes an adjustment for a marketability discount (“DLOM”) on our equity investment of 40% at June 30, 2015. In regards to the underlying projection of revenues and expenses used in the discounted cash flow model, such projections are provided by Ernest. However, we will modify such projections (including underlying assumptions used) as needed based on our review and analysis of Ernest’s historical results, meetings with key members of management, and our understanding of trends and developments within the healthcare industry. In arriving at the DLOM, we started with a DLOM range based on the results of studies supporting valuation discounts for other transactions or structures without a public market. To select the appropriate DLOM within the range, we then considered many qualitative factors including the percent of control, the nature of the underlying investee’s business along with our rights as an investor pursuant to the operating agreement, the size of investment, expected holding period, number of shareholders, access to capital marketplace, etc. To illustrate the effect of movements in the DLOM, we performed a sensitivity analysis below by using basis point variations (dollars in thousands): Basis Point Change in Marketability Discount Estimated Increase (Decrease) +100 basis points $ (59 ) - 100 basis points 59 Because the fair value of Ernest investments noted above approximate their original cost, we did not recognize any unrealized gains/losses during the first half of 2015 or 2014. |
Earnings Per Share_Common Unit
Earnings Per Share/Common Unit | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share/Common Unit | 8. Earnings Per Share/Common Unit Medical Properties Trust, Inc. Our earnings per share were calculated based on the following (amounts in thousands): For the Three Months 2015 2014 Numerator: Income (loss) from continuing operations $ 22,489 $ (203 ) Non-controlling interests’ share in continuing operations (82 ) — Participating securities’ share in earnings (250 ) (195 ) Income (loss) from continuing operations, less participating securities’ share in earnings 22,157 (398 ) Income from discontinued operations attributable to MPT common stockholders — — Net income (loss), less participating securities’ share in earnings $ 22,157 $ (398 ) Denominator: Basic weighted-average common shares 208,071 171,718 Dilutive potential common shares 569 651 Dilutive weighted-average common shares 208,640 172,369 For the Six Months 2015 2014 Numerator: Income from continuing operations $ 58,465 $ 7,105 Non-controlling interests’ share in continuing operations (161 ) (65 ) Participating securities’ share in earnings (516 ) (404 ) Income from continuing operations, less participating securities’ share in earnings 57,788 6,636 Loss from discontinued operations attributable to MPT common stockholders — (2 ) Net income, less participating securities’ share in earnings $ 57,788 $ 6,634 Denominator: Basic weighted-average common shares 205,515 167,846 Dilutive potential common shares 612 613 Dilutive weighted-average common shares 206,127 168,459 MPT Operating Partnership, L.P. Our earnings per common unit were calculated based on the following (amounts in thousands): For the Three Months 2015 2014 Numerator: Income (loss) from continuing operations $ 22,489 $ (203 ) Non-controlling interests’ share in continuing operations (82 ) — Participating securities’ share in earnings (250 ) (195 ) Income (loss) from continuing operations, less participating securities’ share in earnings 22,157 (398 ) Income from discontinued operations attributable to MPT Operating Partnership partners — — Net income (loss), less participating securities’ share in earnings $ 22,157 $ (398 ) Denominator: Basic weighted-average units 208,071 171,718 Dilutive potential units 569 651 Dilutive weighted-average units 208,640 172,369 For the Six Months 2015 2014 Numerator: Income from continuing operations $ 58,465 $ 7,105 Non-controlling interests’ share in continuing operations (161 ) (65 ) Participating securities’ share in earnings (516 ) (404 ) Income from continuing operations, less participating securities’ share in earnings 57,788 6,636 Loss from discontinued operations attributable to MPT Operating Partnership partners — (2 ) Net income, less participating securities’ share in earnings $ 57,788 $ 6,634 Denominator: Basic weighted-average units 205,515 167,846 Dilutive potential units 612 613 Dilutive weighted-average units 206,127 168,459 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Contingencies We are a party to various legal proceedings incidental to our business. In the opinion of management, after consultation with legal counsel, the ultimate liability, if any, with respect to those proceedings is not presently expected to materially affect our financial position, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events Acquisition of Capella Healthcare Hospital Portfolio In July 2015, we entered into definitive agreements pursuant to which we will acquire a portfolio of seven acute care hospitals currently owned and operated by Capella Healthcare, Inc. (“Capella”), a privately held company, as well as acquire an equity interest in the ongoing operator of the facilities. The table below sets forth pertinent details with respect to the hospitals in the portfolio: Hospital Location Type Licensed Capital Medical Center Olympia, WA Acute care 110 EASTAR Health System Muskogee, OK Acute care 320 Carolina Pines Regional Medical Center Hartsville, SC Acute care 116 St. Mary’s Regional Medical Center Russellville, AR Acute care 170 National Park Medical Center Hot Springs, AR Acute care 166 Southwestern Medical Center Lawton, OK Acute care 199 Willamette Valley Medical Center McMinnville, OR Acute care 88 Total Licensed Beds 1,169 Our investment in the portfolio will include our acquisition of real estate assets, the making of mortgage and acquisition loans, and an equity contribution to the operator of the facilities, for a combined purchase price and investment of approximately $900 million. We and current Capella management, who will continue to manage and operate the facilities, have formed a joint venture that will be the acquirer of Capella. After closing of the merger, we will acquire from and lease back to Capella its interests in five acute care hospitals for an aggregate purchase price of approximately $390 million and fund loans secured by first lien mortgages on two hospitals for an aggregate of approximately $210 million. The real estate leases and mortgage loans will have an initial combined GAAP yield of 9.1%, which is reflective of their 15-year terms with four 5-year extension options, plus consumer price-indexed increases, limited to a 2% floor and a 4% ceiling annually. The remaining approximately $300 million investment in the operations of Capella will be in the form of a $290 million acquisition loan to Capella, which will have a fixed interest rate equivalent to the initial lease and mortgage loan rate, and we would have a 49% interest in the equity of the operator, with management owning the remaining 51%. We expect to complete this transaction in the second half of 2015. Financing On July 27, 2015, we received commitment to provide a senior unsecured bridge loan facility in the original principal amount of $1.0 billion to fund the Capella transactions, if necessary. Borrowings under the bridge facility, if any, will bear interest at a rate equal to, at our option, LIBOR plus an applicable margin varying from 1.025% to 2.250% per annum or a Base Rate plus an applicable margin varying from 0.025% to 1.25% per annum, depending upon the ratings of our unsecured senior indebtedness and the total leverage ratio or unsecured leverage ratio. We will pay certain customary structuring and underwriting fees and, in the event we make any borrowings, funding and other fees in connection with the bridge facility. The bridge facility will mature 364 days after the closing date of the Capella transactions. The funding of the bridge facility is contingent of customary conditions, including but not limited to the execution and delivery of definitive documentation and the consummation of the Cappella transactions as described above. We cannot assure you that we will be able to successfully borrow under the bridge facility on the terms described herein or at all. On August 4, 2015, we entered into an amendment to our revolving credit and term loan agreement to increase the current aggregate committed size to $1.25 billion and amend certain covenants in order to permit us to consummate and finance the Capella transactions. The increase in the credit agreement availability reduced the availability of the bridge facility by $100 million to $900 million. On August 6, 2015, we completed an underwritten public offering of 28.75 million shares of our common stock, resulting in net proceeds of approximately $337.1 million, after deducting estimated offering expenses (which is inclusive of the underwriters’ option to purchase 3.8 million additional shares). The offering is expected to close August 11, 2015, subject to customary closing conditions. We intend to use the net proceeds from the offering to partially fund our Capella acquisition described above. Once the offering is completed, our availability under the bridge loan facility will be reduced to approximately $0.6 billion. Other On August 4, 2015, we filed Articles of Amendment to our charter with the Maryland State Department of Assessments and Taxation increasing the number of authorized shares of common stock, par value $0.001 per share available for issuance from 250,000,000 to 500,000,000. On July 31, 2015, we entered into definitive agreements to acquire several acute care hospitals and a freestanding clinic in northern Italy for an aggregate purchase price to us of approximately €90 million. The acquisition will be effected through a newly-formed joint venture between us and affiliates of AXA Real Estate, in which we will own a 50% interest. Upon closing, the facilities will be leased to an Italian acute care hospital operator, pursuant to a long-term master lease. Closing of the transaction, which is expected during the second half of 2015, is subject to customary real estate, regulatory and other closing conditions. On July 30, 2015, we sold a long-term acute care facility in Luling, Texas for approximately $9.7 million, resulting in a gain of $1.5 million. Due to this sale, we wrote off $0.9 million of straight-line receivables. On August 5, 2015, we sold six wellness centers in the United States for total proceeds of approximately $9.5 million (of which $1.5 million is in the form of a note), resulting in a small net gain. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Unaudited Interim Condensed Consolidated Financial Statements | Unaudited Interim Condensed Consolidated Financial Statements For information about significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014. During the six months ended June 30, 2015, there were no material changes to these policies. |
Recent Accounting Developments | Recent Accounting Developments: Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. On April 1, 2015, the FASB proposed deferring the effective date by one year to December 15, 2017, for annual reporting periods beginning after that date. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of December 15, 2016. We do not expect this standard to have a significant impact on our financial results. as a substantial portion of our revenue consists of rental income from leasing arrangements, which are specifically excluded from ASU 2014-09. Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. Amendments to the Consolidation Analysis In February 2015, the FASB issued an ASU 2015-02 that modifies the evaluation of whether limited partnerships and similar legal entities are VIEs, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. The guidance is effective for fiscal years beginning after December 15, 2015, but early adoption is permitted. |
Variable Interest Entities | Variable Interest Entities At June 30, 2015, we had loans to and/or equity investments in certain variable interest entities (“VIEs”), which are also tenants of our facilities, including Ernest Health, Inc. (“Ernest”). We have determined that we are not the primary beneficiary of these VIEs. The carrying value and classification of the related assets and maximum exposure to loss as a result of our involvement with these VIEs are presented below at June 30, 2015 (in thousands): VIE Type Maximum Loss Asset Type Classification Carrying Loans, net $ 277,941 Mortgage and other loans $ 224,482 Equity investments $ 61,323 Other assets $ 6,292 (1) Our maximum loss exposure related to loans with VIEs represents our current aggregate gross carrying value of the loan plus accrued interest and any other related assets (such as rent receivables), less any liabilities. Our maximum loss exposure related to our equity investment in VIEs represents the current carrying values of such investment plus any other related assets (such as rent receivables) less any liabilities. (2) Carrying amount reflects the net book value of our loan or equity interest only in the VIE. For the VIE types above, we do not consolidate the VIE because we do not have the ability to control the activities (such as the day-to-day healthcare operations of our borrower or investees) that most significantly impact the VIE’s economic performance. As of June 30, 2015, we were not required to provide any material financial support through a liquidity arrangement or otherwise to our unconsolidated VIEs, including circumstances in which it could be exposed to further losses (e.g., cash short falls). Typically, our loans are collateralized by assets of the borrower (some assets of which are on the premises of facilities owned by us) and further supported by limited guarantees made by certain principals of the borrower. See Note 3 for additional description of the nature, purpose and activities of our more significant VIEs and interests therein. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Carrying Value and Classification of Related Assets and Maximum Exposure to Loss | The carrying value and classification of the related assets and maximum exposure to loss as a result of our involvement with these VIEs are presented below at June 30, 2015 (in thousands): VIE Type Maximum Loss Asset Type Classification Carrying Loans, net $ 277,941 Mortgage and other loans $ 224,482 Equity investments $ 61,323 Other assets $ 6,292 (1) Our maximum loss exposure related to loans with VIEs represents our current aggregate gross carrying value of the loan plus accrued interest and any other related assets (such as rent receivables), less any liabilities. Our maximum loss exposure related to our equity investment in VIEs represents the current carrying values of such investment plus any other related assets (such as rent receivables) less any liabilities. (2) Carrying amount reflects the net book value of our loan or equity interest only in the VIE. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Assets Acquired | As part of these acquisitions, we acquired the following assets: 2015 2014 Assets Acquired Land and land improvements $ 21,591 $ 8,477 Building 473,425 99,640 Intangible lease assets — subject to amortization (weighted average useful life 15 years) — 6,883 Mortgage loans 40,000 — Net investments in direct financing leases 10,700 — Other loans 16,917 — Total assets acquired $ 562,633 $ 115,000 |
Hospital Facilities [Member] | |
Assets Acquired | The table below sets forth pertinent details with respect to the hospitals in the portfolio: Hospital Location Type Licensed Capital Medical Center Olympia, WA Acute care 110 EASTAR Health System Muskogee, OK Acute care 320 Carolina Pines Regional Medical Center Hartsville, SC Acute care 116 St. Mary’s Regional Medical Center Russellville, AR Acute care 170 National Park Medical Center Hot Springs, AR Acute care 166 Southwestern Medical Center Lawton, OK Acute care 199 Willamette Valley Medical Center McMinnville, OR Acute care 88 Total Licensed Beds 1,169 |
Real Estate and Lending Activ20
Real Estate and Lending Activities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Schedule of Unaudited Supplemental Pro Forma Operating Data | The following unaudited supplemental pro forma operating data is presented for the three and six months ended June 30, 2015 and 2014, as if each acquisition (including completed development projects) was completed on January 1, 2014. Supplemental pro forma earnings were adjusted to exclude acquisition-related costs on consummated deals incurred. The unaudited supplemental pro forma operating data is not necessarily indicative of what the actual results of operations would have been assuming the transactions had been completed as set forth above, nor do they purport to represent our results of operations for future periods (in thousands, except per share/unit amounts). For the Three June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Total revenues $ 108.8 $ 106.2 $ 218.7 $ 211.5 Net income $ 50.2 $ 20.6 $ 99.8 $ 44.6 Net income per share/unit — diluted $ 0.21 $ 0.09 $ 0.42 $ 0.19 |
Summary of Status Update on Current Development Projects | See table below for a status update on our current development projects (in thousands): Property Location Property Type Operator Commitment Costs Incurred as of 06/30/15 Estimated Completion Date First Choice ER- Aurora Aurora, CO Acute Care Hospital Adeptus Health $ 5,273 $ 1,614 3Q 2015 First Choice ER- Carrollton Carrollton, TX Acute Care Hospital Adeptus Health 35,820 30,692 3Q 2015 First Choice ER- Conroe Houston, TX Acute Care Hospital Adeptus Health 6,110 3,150 3Q 2015 First Choice ER- Gilbert Gilbert, AZ Acute Care Hospital Adeptus Health 6,500 4,291 3Q 2015 First Choice ER- McKinney McKinney, TX Acute Care Hospital Adeptus Health 4,750 2,582 3Q 2015 First Choice ER- Chandler-Ray Chandler, AZ Acute Care Hospital Adeptus Health 5,261 1,741 4Q 2015 First Choice ER- Cinco Ranch Katy, TX Acute Care Hospital Adeptus Health 5,105 162 4Q 2015 First Choice ER- Highland Village Highland Village, TX Acute Care Hospital Adeptus Health 4,884 361 4Q 2015 First Choice ER- Parker Parker, CO Acute Care Hospital Adeptus Health 6,868 1,843 4Q 2015 First Choice ER- Frisco Eldorado Frisco, TX Acute Care Hospital Adeptus Health 5,124 50 1Q 2016 First Choice ER- Helotes Helotes, TX Acute Care Hospital Adeptus Health 7,530 2,251 2Q 2016 Rehabilitation Hospital of Northwest Ohio Toledo, OH Inpatient Rehabilitation Hospital Ernest Health 19,212 1,649 2Q 2016 First Choice ER-Vintage Preserve Houston, TX Acute Care Hospital Adeptus Health 45,961 6,376 3Q 2016 First Choice Emergency Rooms Various Acute Care Hospital Adeptus Health 231,649 — Various $ 390,047 $ 56,762 |
Components of Net Investment in Direct Financing Leases | The components of our net investment in DFLs consisted of the following (dollars in thousands): As of June 30, As of December 31, Minimum lease payments receivable $ 1,627,898 $ 1,607,024 Estimated residual values 225,872 211,888 Less: Unearned income (1,398,750 ) (1,379,396 ) Net investment in direct financing leases $ 455,020 $ 439,516 |
Summary of Loans | The following is a summary of our loans (in thousands): As of June 30, 2015 As of December 31, 2014 Mortgage loans $ 437,587 $ 397,594 Acquisition loans 503,012 525,136 Working capital and other loans 45,853 48,031 $ 986,452 $ 970,761 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following is a summary of our debt (dollar amounts in thousands): As of June 30, 2015 As of December 31, 2014 Balance Interest Rate Balance Interest Rate Revolving credit facility (A) $ 674,034 Variable $ 593,490 Variable 2006 Senior Unsecured Notes 125,000 Various 125,000 Various 2011 Senior Unsecured Notes 450,000 6.875 % 450,000 6.875 % 2012 Senior Unsecured Notes: Principal amount 350,000 6.375 % 350,000 6.375 % Unamortized premium 2,345 — 2,522 — 352,345 352,522 2013 Senior Unsecured Notes (B) 222,940 5.750 % 241,960 5.750 % 2014 Senior Unsecured Notes 300,000 5.500 % 300,000 5.500 % Term loans 138,542 Various 138,682 Various $ 2,262,861 $ 2,201,654 (A) As of June 30, 2015, we had €301.0 million of outstanding borrowings on the revolving credit facility, or $335.5 million based on the exchange rate in effect at June 30, 2015. (B) The change in balance from period to period is due to foreign currency fluctuations. These notes are Euro-denominated and reflect the exchange rate at June 30, 2015 and December 31, 2014, respectively. |
Principal Payments Due for Debt | As of June 30, 2015, principal payments due for our debt (which exclude the effects of any premiums recorded) are as follows (in thousands): 2015 $ 142 2016 125,299 2017 320 2018 686,815 2019 125,000 Thereafter 1,322,940 Total $ 2,260,516 |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Information of Financial Instruments | The following table summarizes fair value estimates for our financial instruments (in thousands): June 30, 2015 December 31, 2014 Asset (Liability) Book Fair Book Fair Interest and rent receivables $ 56,792 $ 56,683 $ 41,137 $ 41,005 Loans (1) 771,284 801,457 773,311 803,824 Debt, net (2,262,861 ) (2,341,637 ) (2,201,654 ) (2,285,727 ) (1) Excludes loans related to Ernest since they are recorded at fair value and discussed below. |
Equity Interest in Ernest and Related Loans Measured at Fair Value on Recurring Basis | At June 30, 2015, these amounts were as follows (in thousands): Asset Type Fair Cost Asset Type Mortgage loans $ 100,000 $ 100,000 Mortgage loans Acquisition loans 114,367 114,367 Other loans Other loans 801 801 Other loans Equity investments 3,300 3,300 Other assets $ 218,468 $ 218,468 |
Summary Showing Sensitivity Analysis by Using Basis Point Variations | To illustrate the effect of movements in the DLOM, we performed a sensitivity analysis below by using basis point variations (dollars in thousands): Basis Point Change in Marketability Discount Estimated Increase (Decrease) +100 basis points $ (59 ) - 100 basis points 59 |
Earnings Per Share_Common Unit
Earnings Per Share/Common Unit (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | Medical Properties Trust, Inc. Our earnings per share were calculated based on the following (amounts in thousands): For the Three Months 2015 2014 Numerator: Income (loss) from continuing operations $ 22,489 $ (203 ) Non-controlling interests’ share in continuing operations (82 ) — Participating securities’ share in earnings (250 ) (195 ) Income (loss) from continuing operations, less participating securities’ share in earnings 22,157 (398 ) Income from discontinued operations attributable to MPT common stockholders — — Net income (loss), less participating securities’ share in earnings $ 22,157 $ (398 ) Denominator: Basic weighted-average common shares 208,071 171,718 Dilutive potential common shares 569 651 Dilutive weighted-average common shares 208,640 172,369 For the Six Months 2015 2014 Numerator: Income from continuing operations $ 58,465 $ 7,105 Non-controlling interests’ share in continuing operations (161 ) (65 ) Participating securities’ share in earnings (516 ) (404 ) Income from continuing operations, less participating securities’ share in earnings 57,788 6,636 Loss from discontinued operations attributable to MPT common stockholders — (2 ) Net income, less participating securities’ share in earnings $ 57,788 $ 6,634 Denominator: Basic weighted-average common shares 205,515 167,846 Dilutive potential common shares 612 613 Dilutive weighted-average common shares 206,127 168,459 MPT Operating Partnership, L.P. Our earnings per common unit were calculated based on the following (amounts in thousands): For the Three Months 2015 2014 Numerator: Income (loss) from continuing operations $ 22,489 $ (203 ) Non-controlling interests’ share in continuing operations (82 ) — Participating securities’ share in earnings (250 ) (195 ) Income (loss) from continuing operations, less participating securities’ share in earnings 22,157 (398 ) Income from discontinued operations attributable to MPT Operating Partnership partners — — Net income (loss), less participating securities’ share in earnings $ 22,157 $ (398 ) Denominator: Basic weighted-average units 208,071 171,718 Dilutive potential units 569 651 Dilutive weighted-average units 208,640 172,369 For the Six Months 2015 2014 Numerator: Income from continuing operations $ 58,465 $ 7,105 Non-controlling interests’ share in continuing operations (161 ) (65 ) Participating securities’ share in earnings (516 ) (404 ) Income from continuing operations, less participating securities’ share in earnings 57,788 6,636 Loss from discontinued operations attributable to MPT Operating Partnership partners — (2 ) Net income, less participating securities’ share in earnings $ 57,788 $ 6,634 Denominator: Basic weighted-average units 205,515 167,846 Dilutive potential units 612 613 Dilutive weighted-average units 206,127 168,459 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Carrying Value and Classification of Related Assets and Maximum Exposure to Loss (Detail) | Jun. 30, 2015USD ($) |
Mortgage and other loans [Member] | |
Variable Interest Entity [Line Items] | |
Carrying Amount | $ 224,482,000 |
Loans, net [Member] | |
Variable Interest Entity [Line Items] | |
Maximum Loss Exposure | 277,941,000 |
Other assets [Member] | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 6,292,000 |
Equity investments [Member] | |
Variable Interest Entity [Line Items] | |
Maximum Loss Exposure | $ 61,323,000 |
Real Estate and Lending Activ25
Real Estate and Lending Activities - 2015 Activity - Additional Information (Detail) € in Millions, $ in Millions | Aug. 01, 2015EUR (€)Property | Jun. 30, 2015USD ($)PropertyHospital | Jun. 16, 2015USD ($)BedProperty | Apr. 29, 2015EUR (€)FacilityHospital | Feb. 27, 2015USD ($)Leases | Feb. 13, 2015USD ($)RenewalOptionsFacility | Jul. 31, 2015EUR (€) | Jun. 30, 2015EUR (€) | Dec. 31, 2014EUR (€) |
Subsequent Event [Member] | Acute Care Hospital [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Ownership percentage | 50.00% | ||||||||
Purchase price of acquisition | € 90 | ||||||||
2015 [Member] | Acute Care Hospital [Member] | Kansas [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Term of lease, years | 10 years | ||||||||
Term of lease extension, years | 5 years | ||||||||
Number of facilities acquired | Facility | 2 | ||||||||
Purchase price of acquisition | $ | $ 110 | ||||||||
Number of lease extensions options in current lease contract | RenewalOptions | 2,000,000 | ||||||||
Mortgage financing | $ | $ 40 | ||||||||
Mortgage financing term | 10 years | ||||||||
2015 [Member] | Ernest Health, Inc [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Acquisition costs | $ | $ 31.5 | ||||||||
Term of lease, years | 20 years | ||||||||
Loans provided for acquisition | $ | $ 12 | ||||||||
Number of properties acquired | Property | 2 | ||||||||
2015 [Member] | Ernest Health, Inc [Member] | Minimum [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Term of lease extension, years | 3 years | ||||||||
2015 [Member] | Ernest Health, Inc [Member] | Maximum [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Term of lease extension, years | 5 years | ||||||||
2015 [Member] | Ernest Health, Inc [Member] | Rehabilitation Hospital with Covenant Health System [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Number of beds acquired | Bed | 60 | ||||||||
2015 [Member] | Ernest Health, Inc [Member] | Acute Care Hospital [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Number of beds acquired | Bed | 37 | ||||||||
2015 [Member] | Ernest Health, Inc [Member] | Inpatient Rehabilitation Hospital [Member] | Weslaco, Texas [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Acquisition costs | $ | $ 10.7 | ||||||||
Term of lease extension, years | 5 years | ||||||||
Payments to fund long-term loans to related parties | $ | $ 5 | ||||||||
Lease remaining term | 17 years | ||||||||
Number of lease extension options | Leases | 3 | ||||||||
2015 [Member] | Median Kliniken [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Number of hospitals acquired | Hospital | 35 | 32 | |||||||
Acquisition costs | € 688 | ||||||||
Term of lease, years | 27 years | ||||||||
Lease rate | 9.30% | ||||||||
Lease rent increase percentage | 70.00% | ||||||||
Number of facilities expected to acquire | Facility | 3 | ||||||||
Expected aggregate purchase price | € 705 | ||||||||
Ownership percentage | 94.90% | ||||||||
Ownership percentage by others in Median | 5.10% | ||||||||
Loans provided for acquisition | € 240 | € 425 | |||||||
Number of properties closed | Property | 17 | ||||||||
Value of properties closed | $ 354 | 317 | |||||||
2015 [Member] | Median Kliniken [Member] | Subsequent Event [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Number of properties closed | Property | 30 | ||||||||
Value of properties closed | € 627 | ||||||||
2015 [Member] | Median and Waterland [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Loans provided for acquisition | € 705 |
Real Estate and Lending Activ26
Real Estate and Lending Activities - 2014 Activity - Additional Information (Detail) - USD ($) | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Significant Acquisitions and Disposals [Line Items] | |||||
Income contributed by the acquired entity | $ 50,200 | $ 20,600 | $ 99,800 | $ 44,600 | |
Acquisition related costs | 25,809,000 | 2,535,000 | 32,048,000 | 3,047,000 | |
2015 [Member] | Business Acquisitions [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Revenue contributed by the acquired entity | 4,200,000 | 6,200,000 | |||
Income contributed by the acquired entity | 3,500,000 | 4,900,000 | |||
Acquisition related costs | $ 22,600,000 | $ 26,700,000 | |||
2014 [Member] | Acute Care Hospital [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Acquisition costs | $ 115,000,000 | ||||
Term of lease, years | 15 years | ||||
Term of lease extension, years | 3 years | ||||
2014 [Member] | Acute Care Hospital [Member] | Fair value market [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Term of lease extension, years | 12 years | ||||
2014 [Member] | Business Acquisitions [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Revenue contributed by the acquired entity | 2,300,000 | 2,300,000 | |||
Income contributed by the acquired entity | 1,600,000 | 1,600,000 | |||
Acquisition related costs | $ 400,000 | $ 400,000 |
Real Estate and Lending Activ27
Real Estate and Lending Activities - Assets Acquired (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Significant Acquisitions and Disposals [Line Items] | ||
Total assets acquired | $ 562,633 | $ 115,000 |
Land and Land Improvements [Member] | ||
Significant Acquisitions and Disposals [Line Items] | ||
Total assets acquired | 21,591 | 8,477 |
Building [Member] | ||
Significant Acquisitions and Disposals [Line Items] | ||
Total assets acquired | 473,425 | 99,640 |
Intangible lease assets - subject to amortization [Member] | ||
Significant Acquisitions and Disposals [Line Items] | ||
Total assets acquired | $ 6,883 | |
Net investments in direct financing leases [Member] | ||
Significant Acquisitions and Disposals [Line Items] | ||
Total assets acquired | 10,700 | |
Other loans [Member] | ||
Significant Acquisitions and Disposals [Line Items] | ||
Total assets acquired | 16,917 | |
Mortgage loans [Member] | ||
Significant Acquisitions and Disposals [Line Items] | ||
Total assets acquired | $ 40,000 |
Real Estate and Lending Activ28
Real Estate and Lending Activities - Assets Acquired (Parenthetical) (Detail) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Intangible lease assets - subject to amortization [Member] | ||
Significant Acquisitions and Disposals [Line Items] | ||
Weighted average useful life of acquired intangible lease assets (in years) | 15 years | 15 years |
Real Estate and Loans Receivabl
Real Estate and Loans Receivable - Schedule of Unaudited Supplemental Pro Forma Operating Data (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Total revenues | $ 108,800 | $ 106,200 | $ 218,700 | $ 211,500 |
Net income | $ 50,200 | $ 20,600 | $ 99,800 | $ 44,600 |
Net income per share/unit - diluted | $ 0.21 | $ 0.09 | $ 0.42 | $ 0.19 |
Real Estate and Lending Activ30
Real Estate and Lending Activities - Development Activities - Additional Information (Detail) - Development Activities [Member] € in Millions, $ in Millions | Jun. 16, 2015EUR (€) | May. 05, 2015USD ($) | Apr. 30, 2015USD ($) | Jun. 30, 2015FacilityProperty |
Ernest Health, Inc [Member] | ||||
Significant Acquisitions and Disposals [Line Items] | ||||
Estimated total development cost | $ 19.2 | |||
First Choice [Member] | ||||
Significant Acquisitions and Disposals [Line Items] | ||||
Number of facilities leased | Facility | 7 | |||
Number of property leased | Property | 1 | |||
Acute Care Hospital [Member] | Adeptus Health [Member] | ||||
Significant Acquisitions and Disposals [Line Items] | ||||
Estimated total development cost | $ 250 | |||
Term of lease, years | 15 years | |||
Acute Care Hospital [Member] | Adeptus Health [Member] | Minimum [Member] | ||||
Significant Acquisitions and Disposals [Line Items] | ||||
Term of lease extension, years | 3 years | |||
Acute Care Hospital [Member] | Adeptus Health [Member] | Maximum [Member] | ||||
Significant Acquisitions and Disposals [Line Items] | ||||
Term of lease extension, years | 5 years | |||
Percentage change in annual consumer price index minimum rate | 2.00% | |||
IMED Hospitales [Member] | ||||
Significant Acquisitions and Disposals [Line Items] | ||||
Ownership interest percentage, parent | 50.00% | |||
IMED Hospitales [Member] | Acute Care Hospital [Member] | ||||
Significant Acquisitions and Disposals [Line Items] | ||||
Estimated total development cost | € | € 21.4 |
Real Estate and Lending Activ31
Real Estate and Lending Activities - Summary of Status Update on Current Development Projects (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Business Acquisition [Line Items] | |
Commitment | $ 390,047 |
Costs Incurred as of 06/30/2015 | 56,762 |
First Choice ER - Aurora [Member] | Aurora, CO [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | 5,273 |
Costs Incurred as of 06/30/2015 | 1,614 |
First Choice ER- Carrollton [Member] | Carrollton, TX [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | 35,820 |
Costs Incurred as of 06/30/2015 | 30,692 |
First Choice ER - Conroe [Member] | Houston, TX [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | 6,110 |
Costs Incurred as of 06/30/2015 | 3,150 |
First Choice ER - Gilbert [Member] | Gilbert, AZ [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | 6,500 |
Costs Incurred as of 06/30/2015 | 4,291 |
First Choice ER- McKinney [Member] | McKinney, TX [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | 4,750 |
Costs Incurred as of 06/30/2015 | 2,582 |
First Choice ER - Chandler - Ray [Member] | Chandler, AZ [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | 5,261 |
Costs Incurred as of 06/30/2015 | $ 1,741 |
Estimated Completion Date | 4Q 2015 |
First Choice ER - Cinco Ranch [Member] | Katy, TX [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 5,105 |
Costs Incurred as of 06/30/2015 | $ 162 |
Estimated Completion Date | 4Q 2015 |
First Choice ER - Highland Village [Member] | Highland Village, TX [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 4,884 |
Costs Incurred as of 06/30/2015 | $ 361 |
Estimated Completion Date | 4Q 2015 |
First Choice ER - Parker [Member] | Parker, CO [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 6,868 |
Costs Incurred as of 06/30/2015 | $ 1,843 |
Estimated Completion Date | 4Q 2015 |
First Choice ER - Frisco Eldorado [Member] | Frisco, TX [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 5,124 |
Costs Incurred as of 06/30/2015 | $ 50 |
Estimated Completion Date | 1Q 2016 |
First Choice ER - Helotes [Member] | Helotes, TX [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 7,530 |
Costs Incurred as of 06/30/2015 | $ 2,251 |
Estimated Completion Date | 2Q 2016 |
Rehabilitation Hospital of Northwest Ohio [Member] | Toledo, OH [Member] | Inpatient Rehabilitation Hospital [Member] | Ernest Health, Inc [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 19,212 |
Costs Incurred as of 06/30/2015 | $ 1,649 |
Estimated Completion Date | 2Q 2016 |
First Choice ER - Vintage Preserve [Member] | Houston, TX [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 45,961 |
Costs Incurred as of 06/30/2015 | $ 6,376 |
Estimated Completion Date | 2Q 2016 |
First Choice Emergency Rooms [Member] | Various [Member] | Acute Care Hospital [Member] | Adeptus Health [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 231,649 |
Estimated Completion Date | Various |
Real Estate and Lending Activ32
Real Estate and Lending Activities - Leasing Operations - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015Leases | |
Ernest Health, Inc [Member] | |
Significant Acquisitions and Disposals [Line Items] | |
Number of direct financing leases | 15 |
Prime Facilities [Member] | |
Significant Acquisitions and Disposals [Line Items] | |
Number of direct financing leases | 5 |
Real Estate and Lending Activ33
Real Estate and Lending Activities - Components of Net Investment in Direct Financing Leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Business Combinations [Abstract] | ||
Minimum lease payments receivable | $ 1,627,898 | $ 1,607,024 |
Estimated residual values | 225,872 | 211,888 |
Less: Unearned income | (1,398,750) | (1,379,396) |
Net investment in direct financing leases | $ 455,020 | $ 439,516 |
Real Estate and Lending Activ34
Real Estate and Lending Activities - Florence Facility - Additional Information (Detail) - Florence Acute Care Facility [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 06, 2013 |
Significant Acquisitions and Disposals [Line Items] | ||
Real estate investment | $ 27.1 | |
Outstanding rent receivables | $ 1.1 | |
Letter of credit outstanding | $ 1.2 |
Real Estate and Lending Activ35
Real Estate and Lending Activities - Gilbert Facility - Additional Information (Detail) - Gilbert, AZ [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2014 | Jun. 30, 2015 | |
Significant Acquisitions and Disposals [Line Items] | ||
Amortization of the related lease intangible asset | $ 1 | |
Straight line rent receivables write-off | $ 1.1 | |
Real estate investment | $ 13.9 |
Real Estate and Lending Activ36
Real Estate and Lending Activities - Summary of Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Loans [Line Items] | ||
Loans, Balance | $ 986,452 | $ 970,761 |
Mortgage loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | 437,587 | 397,594 |
Acquisition loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | 503,012 | 525,136 |
Working capital and other loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | $ 45,853 | $ 48,031 |
Real Estate and Lending Activ37
Real Estate and Lending Activities - Loans - Additional Information (Detail) - USD ($) $ in Millions | Mar. 01, 2012 | Jun. 30, 2015 |
Significant Acquisitions and Disposals [Line Items] | ||
Amount of convertible note converted into equity interest | $ 1.7 | |
Convertible note | $ 5 | |
Percentage of equity shares from convertible debt | 9.90% | 15.10% |
Remaining convertible debt after conversion of part of debt | $ 3.3 | |
Ernest Transaction and Other Acquisitions [Member] | ||
Significant Acquisitions and Disposals [Line Items] | ||
Existing mortgage loans | 114.4 | |
Median Kliniken [Member] | ||
Significant Acquisitions and Disposals [Line Items] | ||
Existing mortgage loans | $ 376.8 |
Real Estate and Lending Activ38
Real Estate and Lending Activities - Concentrations of Credit Risk - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)Investment | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Investment | Jun. 30, 2014USD ($) | Dec. 31, 2014 | |
Significant Acquisitions and Disposals [Line Items] | |||||
Revenue | $ 99,801 | $ 76,560 | $ 195,762 | $ 149,649 | |
Assets, Total [Member] | Customer Concentration Risk [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Number of investment in property | Investment | 0 | 0 | |||
Maximum percentage of entity's total assets invested on single property | 3.00% | 3.00% | |||
Assets, Total [Member] | Customer Concentration Risk [Member] | Median Kliniken [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Percentage of entity revenue from affiliates | 17.30% | 11.30% | |||
Assets, Total [Member] | Geographic Concentration Risk [Member] | California [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Percentage of entity revenue from affiliates | 12.90% | 14.60% | |||
Assets, Total [Member] | Geographic Concentration Risk [Member] | Texas [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Percentage of entity revenue from affiliates | 19.80% | 20.20% | |||
Assets, Total [Member] | Geographic Concentration Risk [Member] | European [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Percentage of entity revenue from affiliates | 25.00% | 20.00% | |||
Assets, Total [Member] | Geographic Concentration Risk [Member] | United States | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Percentage of entity revenue from affiliates | 75.00% | 80.00% | |||
Sales Revenue, Net [Member] | European [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Revenue | $ 18,100 | $ 5,500 | $ 34,400 | $ 10,900 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Median Kliniken [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Percentage of entity revenue from affiliates | 11.10% | 10.30% | |||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Prime Health Care Services [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Percentage of entity revenue from affiliates | 25.90% | 27.90% | 25.50% | 28.50% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Ernest Health, Inc [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Percentage of entity revenue from affiliates | 15.00% | 18.20% | 15.20% | 18.90% | |
Asset Leased [Member] | Customer Concentration Risk [Member] | Prime Health Care Services [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Percentage of entity revenue from affiliates | 13.80% | 12.60% | |||
Asset Leased [Member] | Customer Concentration Risk [Member] | Ernest Health, Inc [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Percentage of entity revenue from affiliates | 7.90% | 7.70% | |||
Loaned to Prime [Member] | Customer Concentration Risk [Member] | Prime Health Care Services [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Percentage of entity revenue from affiliates | 7.50% | 7.40% | |||
Loaned to Ernest [Member] | Customer Concentration Risk [Member] | Ernest Health, Inc [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Percentage of entity revenue from affiliates | 5.10% | 5.30% |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Principal amount | $ 2,260,516 | |
Debt | $ 2,262,861 | $ 2,201,654 |
2011 Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes, interest rate | 6.875% | 6.875% |
Debt | $ 450,000 | $ 450,000 |
Revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | Variable | Variable |
Debt | $ 674,034 | $ 593,490 |
2006 Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | Various | Various |
Debt | $ 125,000 | $ 125,000 |
2012 Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 350,000 | $ 350,000 |
Senior unsecured notes, interest rate | 6.375% | 6.375% |
Unamortized premium | $ 2,345 | $ 2,522 |
Debt | $ 352,345 | $ 352,522 |
2013 Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes, interest rate | 5.75% | 5.75% |
Debt | $ 222,940 | $ 241,960 |
2014 Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes, interest rate | 5.50% | 5.50% |
Debt | $ 300,000 | $ 300,000 |
Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | Various | Various |
Debt | $ 138,542 | $ 138,682 |
Debt - Summary of Debt (Parenth
Debt - Summary of Debt (Parenthetical) (Detail) - Jun. 30, 2015 € in Millions, $ in Millions | USD ($) | EUR (€) |
Revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings on the revolving credit facility | $ 335.5 | € 301 |
Debt - Principal Payments Due f
Debt - Principal Payments Due for Debt (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,015 | $ 142 |
2,016 | 125,299 |
2,017 | 320 |
2,018 | 686,815 |
2,019 | 125,000 |
Thereafter | 1,322,940 |
Total | $ 2,260,516 |
Debt - Interest Rate Swap - Add
Debt - Interest Rate Swap - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2010 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Oct. 31, 2011 | |
Interest Rate Contract [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of the interest rate swaps | $ 4,700,000 | $ 4,700,000 | $ 6,000,000 | ||||
Interest Rate Contract One [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of interest rate derivative instrument | 5.507% | 5.507% | |||||
Maturity date of interest rate swap | July 2,016 | ||||||
Interest Rate Contract Two [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maturity date of interest rate swap | October 2,016 | ||||||
Interest rate swap, amount fixed | $ 60,000,000 | ||||||
Interest rate of derivative instrument | 5.675% | ||||||
Interest Rate Swap [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Hedge ineffectiveness and income statement effect in period | $ 0 | $ 0 | $ 0 | $ 0 | |||
Other assets, collateral | $ 2,500,000 | $ 2,500,000 | $ 3,300,000 | ||||
2006 Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Portion of debt instrument face amount | $ 65,000,000 |
Debt - Covenants - Additional I
Debt - Covenants - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Percentage of dividends which could be paid from adjusted operating funds | 95.00% |
Percentage of dividends which could be paid from operation funds | 95.00% |
Maximum percentage of total unencumbered assets | 150.00% |
Common Stock_Partners' Capital
Common Stock/Partners' Capital - Additional Information (Detail) $ / shares in Units, shares in Thousands | Jan. 14, 2015USD ($)shares | Mar. 11, 2014USD ($)shares | Jan. 31, 2014USD ($) | Mar. 31, 2014USD ($)$ / sharesshares | Jun. 30, 2015USD ($)EmployeeDirectorPartnershares | Jun. 30, 2014USD ($)shares | Dec. 31, 2014shares |
Class of Stock [Line Items] | |||||||
Common stock, shares issued | shares | 207,804 | 172,743 | |||||
Proceeds from sale of common shares/units, net of offering costs | $ 479,902,000 | $ 128,332,000 | |||||
MPT Operating Partnership, L.P. [Member] | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from sale of common shares/units, net of offering costs | $ 479,902,000 | $ 128,332,000 | |||||
Ownership interest in equity | 99.86% | ||||||
Number of units sold | shares | 34,500 | 9,800 | |||||
Number of other partners | Partner | 3 | ||||||
Market Equity Offering Program [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares issued | shares | 900 | ||||||
Proceeds from sale of common shares/units, net of offering costs | $ 12,300,000 | ||||||
Sales commission percentage | 1.25% | ||||||
Market Equity Offering Program [Member] | IPO [Member] | |||||||
Class of Stock [Line Items] | |||||||
Public offering price for common stock per share | $ / shares | $ 13.21 | ||||||
Market Equity Offering Program [Member] | Maximum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares can be sold out | $ 250,000,000 | ||||||
Employee [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of partners shared remaining ownership percentage | Employee | 2 | ||||||
Director [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of partners shared remaining ownership percentage | Director | 1 | ||||||
Public Offering [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares issued | shares | 34,500 | 7,700 | |||||
Additional shares purchased by underwriters | shares | 4,500 | 1,200 | |||||
Proceeds from sale of common shares/units, net of offering costs | $ 480,000,000 | $ 100,200,000 | |||||
Time granted to underwriters to purchase shares | 30 days | ||||||
Net proceeds from additional issuance of shares | $ 16,000,000 |
Stock Awards - Additional Infor
Stock Awards - Additional Information (Detail) - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Time-Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, multi-year performance-based awards | 217,177 | 406,055 |
Stock awards vesting period in years | 3 years | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, multi-year performance-based awards | 176,046 | 384,823 |
Stock awards vesting period in years | 3 years | |
Multi-year performance-based awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, multi-year performance-based awards | 505,050 | 500,000 |
Stock awards vesting period in years | 3 years | |
Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Reserved shares of common stock for awards under the Equity Incentive Plan | 7,643,651 | |
Common stock remaining for future stock awards transferred to the equity incentive plan | 5,419,441 |
Fair Value of Financial Instr46
Fair Value of Financial Instruments - Summary of Fair Value Information of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Interest and rent receivables, Book value | $ 56,792 | $ 41,137 |
Loans, Book value | 771,284 | 773,311 |
Debt, net Book value | (2,262,861) | (2,201,654) |
Interest and rent receivables, Fair value | 56,683 | 41,005 |
Loans, Fair value | 801,457 | 803,824 |
Debt, net Fair value | $ (2,341,637) | $ (2,285,727) |
Fair Value of Financial Instr47
Fair Value of Financial Instruments - Equity Interest in Ernest and Related Loans Measured at Fair Value on Recurring Basis (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | $ 218,468 |
Cost | 218,468 |
Fair Value Measurements, Recurring [Member] | Equity investments [Member] | Other assets [Member] | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | 3,300 |
Cost | 3,300 |
Fair Value Measurements, Recurring [Member] | Acquisition loans [Member] | Other loans [Member] | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | 114,367 |
Cost | 114,367 |
Fair Value Measurements, Recurring [Member] | Other real estate loans [Member] | Other loans [Member] | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | 801 |
Cost | 801 |
Fair Value Measurements, Recurring [Member] | Mortgage loans [Member] | Mortgage loans [Member] | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | 100,000 |
Cost | $ 100,000 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments - Additional information (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Adjustment for marketability discount | 40.00% |
Fair Value of Financial Instr49
Fair Value of Financial Instruments - Summary Showing Sensitivity Analysis by Using Basis Point Variations (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
+100 basis points [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated Increase (Decrease) In Fair Value of Financial Instruments | $ (59) |
- 100 basis points [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated Increase (Decrease) In Fair Value of Financial Instruments | $ 59 |
Earnings Per Share_Common Uni50
Earnings Per Share/Common Unit - Calculation of Earnings Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Income (loss) from continuing operations | $ 22,489 | $ (203) | $ 58,465 | $ 7,105 |
Non-controlling interests' share in continuing operations | (82) | (161) | (65) | |
Participating securities' share in earnings | (250) | (195) | (516) | (404) |
Income (loss) from continuing operations, less participating securities' share in earnings | 22,157 | (398) | 57,788 | 6,636 |
Income (loss) from discontinued operations attributable to MPT common stockholders | (2) | |||
Net income (loss), less participating securities' share in earnings | $ 22,157 | $ (398) | $ 57,788 | $ 6,634 |
Basic weighted-average common shares | 208,071 | 171,718 | 205,515 | 167,846 |
Dilutive potential common shares | 569 | 651 | 612 | 613 |
Dilutive weighted-average common shares | 208,640 | 172,369 | 206,127 | 168,459 |
MPT Operating Partnership, L.P. [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Income (loss) from continuing operations | $ 22,489 | $ (203) | $ 58,465 | $ 7,105 |
Non-controlling interests' share in continuing operations | (82) | (161) | (65) | |
Participating securities' share in earnings | (250) | (195) | (516) | (404) |
Income (loss) from continuing operations, less participating securities' share in earnings | 22,157 | (398) | 57,788 | 6,636 |
Income (loss) from discontinued operations attributable to MPT common stockholders | (2) | |||
Net income (loss), less participating securities' share in earnings | $ 22,157 | $ (398) | $ 57,788 | $ 6,634 |
Basic weighted-average common shares | 208,071 | 171,718 | 205,515 | 167,846 |
Dilutive potential common shares | 569 | 651 | 612 | 613 |
Dilutive weighted-average common shares | 208,640 | 172,369 | 206,127 | 168,459 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ / shares in Units, € in Millions | Aug. 06, 2015USD ($)shares | Aug. 05, 2015USD ($)Hospital | Aug. 04, 2015USD ($)$ / sharesshares | Jul. 30, 2015USD ($) | Jul. 27, 2015USD ($) | Jan. 14, 2015USD ($)shares | Mar. 11, 2014USD ($)shares | Jul. 31, 2015USD ($)FacilityLeases | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Jul. 31, 2015EUR (€)Facility | Dec. 31, 2014$ / sharesshares |
Subsequent Event [Line Items] | ||||||||||||
Common stock, shares issued | shares | 207,804,000 | 172,743,000 | ||||||||||
Proceeds from sale of common shares/units, net of offering costs | $ 479,902,000 | $ 128,332,000 | ||||||||||
Common stock, shares authorized | shares | 250,000,000 | 250,000,000 | ||||||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||||||||||
Public Offering [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Common stock, shares issued | shares | 34,500,000 | 7,700,000 | ||||||||||
Proceeds from sale of common shares/units, net of offering costs | $ 480,000,000 | $ 100,200,000 | ||||||||||
Net proceeds from additional issuance of shares | $ 16,000,000 | |||||||||||
Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Common stock, shares authorized | shares | 500,000,000 | |||||||||||
Common stock, par value | $ / shares | $ 0.001 | |||||||||||
Subsequent Event [Member] | Capella Healthcare, Inc. [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interests acquired, number of hospitals | Facility | 5 | |||||||||||
Combined purchase price and investment amount | $ 900,000,000 | |||||||||||
Acquisition costs | $ 390,000,000 | |||||||||||
Number of hospitals used to secure loans | Facility | 2 | 2 | ||||||||||
Secured loans granted in connection with acquisition | $ 210,000,000 | |||||||||||
Merger consideration net of real estate investments | 300,000,000 | |||||||||||
Merger consideration in the form of acquisition loan | $ 290,000,000 | |||||||||||
Ownership interests acquired | 49.00% | 49.00% | ||||||||||
Term of lease, years | 15 years | |||||||||||
Number of lease extension options | Leases | 4 | |||||||||||
Term of lease extension, years | 5 years | |||||||||||
Increase in consumer price-index, floor rate | 2.00% | |||||||||||
Increase in consumer price-index, ceiling rate | 4.00% | |||||||||||
Aggregate committed size of credit facility | $ 1,250,000,000 | |||||||||||
Senior unsecured bridge loan facility, maturity period | 364 days | |||||||||||
Subsequent Event [Member] | Texas [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Proceeds from sale of real estate | $ 9,700,000 | |||||||||||
Gain (loss) on sale of real estate | 1,500,000 | |||||||||||
Straight line rent receivables write-off | $ 900,000 | |||||||||||
Subsequent Event [Member] | United States | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Proceeds from sale of real estate | $ 9,500,000 | |||||||||||
Number of hospitals sold | Hospital | 6 | |||||||||||
Consideration received as note receivable | $ 1,500,000 | |||||||||||
Subsequent Event [Member] | Bridge Loan [Member] | Capella Healthcare, Inc. [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate committed size of credit facility | $ 1,000,000,000 | |||||||||||
Increase (decrease) in credit facility | $ (600,000,000) | (100,000,000) | ||||||||||
Remaining borrowing capacity | $ 900,000,000 | |||||||||||
Subsequent Event [Member] | Public Offering [Member] | Capella Healthcare, Inc. [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Common stock, shares issued | shares | 28,750,000 | |||||||||||
Proceeds from sale of common shares/units, net of offering costs | $ 337,100,000 | |||||||||||
Net proceeds from additional issuance of shares | $ 3,800,000 | |||||||||||
Subsequent Event [Member] | LIBOR Rate [Member] | Minimum [Member] | Bridge Loan [Member] | Capella Healthcare, Inc. [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate, applicable margin | 1.025% | |||||||||||
Subsequent Event [Member] | LIBOR Rate [Member] | Maximum [Member] | Bridge Loan [Member] | Capella Healthcare, Inc. [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate, applicable margin | 2.25% | |||||||||||
Subsequent Event [Member] | Base Rate [Member] | Minimum [Member] | Bridge Loan [Member] | Capella Healthcare, Inc. [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate, applicable margin | 0.025% | |||||||||||
Subsequent Event [Member] | Base Rate [Member] | Maximum [Member] | Bridge Loan [Member] | Capella Healthcare, Inc. [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate, applicable margin | 1.25% | |||||||||||
Subsequent Event [Member] | Capella Management [Member] | Capella Healthcare, Inc. [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Ownership interests acquired | 51.00% | 51.00% | ||||||||||
Subsequent Event [Member] | Acute Care Hospital [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Purchase price of acquisition | € | € 90 | |||||||||||
Ownership interest percentage, parent | 50.00% | 50.00% | ||||||||||
Subsequent Event [Member] | Acute Care Hospital [Member] | Capella Healthcare, Inc. [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interests acquired, number of hospitals | Facility | 7 |
Subsequent Events - Summary of
Subsequent Events - Summary of Hospitals in Acquisition Portfolio (Detail) - Subsequent Event [Member] | Jul. 31, 2015Bed |
Business Acquisition [Line Items] | |
Total Licensed Beds | 1,169 |
Capital Medical Center [Member] | Olympia, WA [Member] | Acute Care Hospital [Member] | |
Business Acquisition [Line Items] | |
Total Licensed Beds | 110 |
EASTAR Health System [Member] | Muskogee, OK [Member] | Acute Care Hospital [Member] | |
Business Acquisition [Line Items] | |
Total Licensed Beds | 320 |
Carolina Pines Regional Medical Center [Member] | Hartsville, SC [Member] | Acute Care Hospital [Member] | |
Business Acquisition [Line Items] | |
Total Licensed Beds | 116 |
St. Mary's Regional Medical Center [Member] | Russellville, AR [Member] | Acute Care Hospital [Member] | |
Business Acquisition [Line Items] | |
Total Licensed Beds | 170 |
National Park Medical Center [Member] | Hot Springs, AR [Member] | Acute Care Hospital [Member] | |
Business Acquisition [Line Items] | |
Total Licensed Beds | 166 |
Southwestern Medical Center [Member] | Lawton, OK [Member] | Acute Care Hospital [Member] | |
Business Acquisition [Line Items] | |
Total Licensed Beds | 199 |
Willamette Valley Medical Center [Member] | McMinnville, OR [Member] | Acute Care Hospital [Member] | |
Business Acquisition [Line Items] | |
Total Licensed Beds | 88 |
Uncategorized Items - mpw-20150
Label | Element | Value |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | $ (203) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 22,489 |
Asset Impairment Charges | us-gaap_AssetImpairmentCharges | 29,631 |
Mpt Operating Partnership L P [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | (203) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 22,489 |
Asset Impairment Charges | us-gaap_AssetImpairmentCharges | $ 29,631 |