Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 | 364,736,886 | |
MPT Operating Partnership, L.P. [Member] | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 | Mar. 31, 2018 | Dec. 31, 2017 |
Real estate assets | ||
Land, buildings and improvements, intangible lease assets, and other | $ 5,867,286 | $ 5,797,605 |
Real estate held for sale | 146,615 | |
Mortgage loans | 1,927,393 | 1,778,316 |
Net investment in direct financing leases | 686,024 | 698,727 |
Gross investment in real estate assets | 8,480,703 | 8,421,263 |
Accumulated depreciation and amortization | (493,782) | (455,712) |
Net investment in real estate assets | 7,986,921 | 7,965,551 |
Cash and cash equivalents | 138,314 | 171,472 |
Interest and rent receivables | 81,965 | 78,970 |
Straight-line rent receivables | 202,317 | 185,592 |
Other loans | 148,842 | 150,209 |
Other assets | 473,481 | 468,494 |
Total Assets | 9,031,840 | 9,020,288 |
Liabilities | ||
Debt, net | 4,898,364 | 4,898,667 |
Accounts payable and accrued expenses | 206,891 | 211,188 |
Deferred revenue | 15,549 | 18,178 |
Lease deposits and other obligations to tenants | 57,847 | 57,050 |
Total liabilities | 5,178,651 | 5,185,083 |
Equity / Capital | ||
Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstanding | ||
Common stock, $0.001 par value. Authorized 500,000 shares; issued and outstanding — 364,695 shares at March 31, 2018 and 364,424 shares at December 31, 2017 | 365 | 364 |
Limited Partners: | ||
Additional paid-in capital | 4,333,972 | 4,333,027 |
Distributions in excess of net income | (484,804) | (485,932) |
Accumulated other comprehensive loss | (9,961) | (26,049) |
Treasury shares, at cost | (777) | (777) |
Total Medical Properties Trust, Inc. Stockholders' Equity (MPT Operating Partnership, L.P. capital) | 3,838,795 | 3,820,633 |
Non-controlling interests | 14,394 | 14,572 |
Total Equity / Capital | 3,853,189 | 3,835,205 |
Total Liabilities and Equity / Capital | 9,031,840 | 9,020,288 |
MPT Operating Partnership, L.P. [Member] | ||
Real estate assets | ||
Land, buildings and improvements, intangible lease assets, and other | 5,867,286 | 5,797,605 |
Real estate held for sale | 146,615 | |
Mortgage loans | 1,927,393 | 1,778,316 |
Net investment in direct financing leases | 686,024 | 698,727 |
Gross investment in real estate assets | 8,480,703 | 8,421,263 |
Accumulated depreciation and amortization | (493,782) | (455,712) |
Net investment in real estate assets | 7,986,921 | 7,965,551 |
Cash and cash equivalents | 138,314 | 171,472 |
Interest and rent receivables | 81,965 | 78,970 |
Straight-line rent receivables | 202,317 | 185,592 |
Other loans | 148,842 | 150,209 |
Other assets | 473,481 | 468,494 |
Total Assets | 9,031,840 | 9,020,288 |
Liabilities | ||
Debt, net | 4,898,364 | 4,898,667 |
Accounts payable and accrued expenses | 115,149 | 121,465 |
Deferred revenue | 15,549 | 18,178 |
Lease deposits and other obligations to tenants | 57,847 | 57,050 |
Payable due to Medical Properties Trust, Inc. | 91,352 | 89,333 |
Total liabilities | 5,178,261 | 5,184,693 |
Limited Partners: | ||
Accumulated other comprehensive loss | (9,961) | (26,049) |
Total Medical Properties Trust, Inc. Stockholders' Equity (MPT Operating Partnership, L.P. capital) | 3,839,185 | 3,821,023 |
Non-controlling interests | 14,394 | 14,572 |
Total Equity / Capital | 3,853,579 | 3,835,595 |
Total Liabilities and Equity / Capital | 9,031,840 | 9,020,288 |
MPT Operating Partnership, L.P. [Member] | General Partner [Member] | ||
Equity / Capital | ||
General Partner — issued and outstanding — 3,647 units at March 31, 2018 and 3,644 units at December 31, 2017 | 38,518 | 38,489 |
MPT Operating Partnership, L.P. [Member] | Common Units [Member] | ||
Limited Partners: | ||
Limited Partners Capital | $ 3,810,628 | $ 3,808,583 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 500,000,000 | 500,000,000 |
Common stock, shares issued | 364,695,000 | 364,424,000 |
Common stock, shares outstanding | 364,695,000 | 364,424,000 |
MPT Operating Partnership, L.P. [Member] | Common Units [Member] | ||
Limited Partners, units issued | 361,048,000 | 360,780,000 |
Limited Partners, units outstanding | 361,048,000 | 360,780,000 |
General Partner [Member] | MPT Operating Partnership, L.P. [Member] | ||
General partner, units issued | 3,647,000 | 3,644,000 |
General partner, units outstanding | 3,647,000 | 3,644,000 |
LTIP Units [Member] | MPT Operating Partnership, L.P. [Member] | ||
LTIP Units, shares issued | 232,000 | 292,000 |
LTIP Units, shares outstanding | 232,000 | 292,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Net Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Rent billed | $ 128,011 | $ 96,763 |
Straight-line rent | 15,791 | 12,779 |
Income from direct financing leases | 17,681 | 17,880 |
Interest and fee income | 43,563 | 28,975 |
Total revenues | 205,046 | 156,397 |
Expenses | ||
Interest | 57,023 | 38,029 |
Real estate depreciation and amortization | 35,802 | 27,586 |
Property-related | 2,184 | 1,328 |
General and administrative | 17,818 | 13,197 |
Acquisition costs | 2,756 | |
Total expenses | 112,827 | 82,896 |
Other income (expense) | ||
Gain on sale of real estate, net | 1,467 | 7,413 |
Debt refinancing costs | (13,629) | |
Other | (1,468) | 1,767 |
Total other income (expense) | (1) | (4,449) |
Income before income tax | 92,218 | 69,052 |
Income tax expense | (1,175) | (867) |
Net income | 91,043 | 68,185 |
Net income attributable to non-controlling interests | (442) | (215) |
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 90,601 | $ 67,970 |
Earnings per common share — basic and diluted | ||
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 0.25 | $ 0.21 |
Weighted average shares outstanding - basic | 364,882 | 321,057 |
Weighted average shares outstanding - diluted | 365,343 | 321,423 |
Dividends declared per common share | $ 0.25 | $ 0.24 |
MPT Operating Partnership, L.P. [Member] | ||
Revenues | ||
Rent billed | $ 128,011 | $ 96,763 |
Straight-line rent | 15,791 | 12,779 |
Income from direct financing leases | 17,681 | 17,880 |
Interest and fee income | 43,563 | 28,975 |
Total revenues | 205,046 | 156,397 |
Expenses | ||
Interest | 57,023 | 38,029 |
Real estate depreciation and amortization | 35,802 | 27,586 |
Property-related | 2,184 | 1,328 |
General and administrative | 17,818 | 13,197 |
Acquisition costs | 2,756 | |
Total expenses | 112,827 | 82,896 |
Other income (expense) | ||
Gain on sale of real estate, net | 1,467 | 7,413 |
Debt refinancing costs | (13,629) | |
Other | (1,468) | 1,767 |
Total other income (expense) | (1) | (4,449) |
Income before income tax | 92,218 | 69,052 |
Income tax expense | (1,175) | (867) |
Net income | 91,043 | 68,185 |
Net income attributable to non-controlling interests | (442) | (215) |
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 90,601 | $ 67,970 |
Earnings per common share — basic and diluted | ||
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 0.25 | $ 0.21 |
Weighted average shares outstanding - basic | 364,882 | 321,057 |
Weighted average shares outstanding - diluted | 365,343 | 321,423 |
Dividends declared per common share | $ 0.25 | $ 0.24 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 91,043 | $ 68,185 |
Other comprehensive income: | ||
Foreign currency translation gain | 16,088 | 6,292 |
Total comprehensive income | 107,131 | 74,477 |
Comprehensive income attributable to non-controlling interests | (442) | (215) |
Comprehensive income attributable to MPT common stockholders (Operating Partnership Partners) | 106,689 | 74,262 |
MPT Operating Partnership, L.P. [Member] | ||
Net income | 91,043 | 68,185 |
Other comprehensive income: | ||
Foreign currency translation gain | 16,088 | 6,292 |
Total comprehensive income | 107,131 | 74,477 |
Comprehensive income attributable to non-controlling interests | (442) | (215) |
Comprehensive income attributable to MPT common stockholders (Operating Partnership Partners) | $ 106,689 | $ 74,262 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net income | $ 91,043 | $ 68,185 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 37,858 | 28,954 |
Amortization of deferred financing costs and debt discount | 1,789 | 1,617 |
Direct financing lease interest accretion | (2,340) | (2,286) |
Straight-line rent revenue | (20,377) | (13,896) |
Share / (Unit)-based compensation expense | 1,856 | 1,971 |
Gain from sale of real estate, net | (1,467) | (7,413) |
Straight-line rent and other write-off | 6,059 | 1,117 |
Debt refinancing costs | 13,629 | |
Other adjustments | (3,217) | (2,959) |
Changes in: | ||
Interest and rent receivables | (3,678) | (4,208) |
Accounts payable and accrued expenses | (12,729) | (20,428) |
Net cash provided by operating activities | 94,797 | 64,283 |
Investing activities | ||
Cash paid for acquisitions and other related investments | (9,004) | |
Net proceeds from sale of real estate | 148,809 | 64,335 |
Principal received on loans receivable | 1,734 | 3,233 |
Investment in loans receivable | (149,080) | (1,410) |
Construction in progress and other | (8,399) | (26,898) |
Net cash (used for) provided by investing activities | (6,936) | 30,256 |
Financing activities | ||
Proceeds from term debt | 955,280 | |
Payments of term debt | (675,201) | |
Revolving credit facilities, net | (33,590) | 90,000 |
Distributions paid | (89,403) | (74,521) |
Lease deposits and other obligations to tenants | 1,299 | 3,307 |
Debt issuance costs paid and other financing activities | (1,643) | (15,882) |
Net cash (used for) provided by financing activities | (123,337) | 282,983 |
(Decrease) increase in cash, cash equivalents and restricted cash for period | (35,476) | 377,522 |
Effect of exchange rate changes | 2,774 | (10,083) |
Cash, cash equivalents and restricted cash at beginning of period | 172,247 | 84,882 |
Cash, cash equivalents and restricted cash at end of period | 139,545 | 452,321 |
Interest paid | 57,025 | 51,601 |
Supplemental schedule of non-cash financing activities: | ||
Distributions declared, unpaid | 91,410 | 77,172 |
Cash, cash equivalents and restricted cash are comprised of the following: | ||
Cash and cash equivalents at beginning of period | 171,472 | 83,240 |
Restricted cash, included in Other assets at beginning of period | 775 | 1,642 |
Cash, cash equivalents and restricted cash at beginning of period | 172,247 | 84,882 |
Cash and cash equivalents at end of period | 138,314 | 446,948 |
Restricted cash, included in Other assets at end of period | 1,231 | 5,373 |
Cash, cash equivalents and restricted cash at end of period | 139,545 | 452,321 |
MPT Operating Partnership, L.P. [Member] | ||
Operating activities | ||
Net income | 91,043 | 68,185 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 37,858 | 28,954 |
Amortization of deferred financing costs and debt discount | 1,789 | 1,617 |
Direct financing lease interest accretion | (2,340) | (2,286) |
Straight-line rent revenue | (20,377) | (13,896) |
Share / (Unit)-based compensation expense | 1,856 | 1,971 |
Gain from sale of real estate, net | (1,467) | (7,413) |
Straight-line rent and other write-off | 6,059 | 1,117 |
Debt refinancing costs | 13,629 | |
Other adjustments | (3,217) | (2,959) |
Changes in: | ||
Interest and rent receivables | (3,678) | (4,208) |
Accounts payable and accrued expenses | (12,729) | (20,428) |
Net cash provided by operating activities | 94,797 | 64,283 |
Investing activities | ||
Cash paid for acquisitions and other related investments | (9,004) | |
Net proceeds from sale of real estate | 148,809 | 64,335 |
Principal received on loans receivable | 1,734 | 3,233 |
Investment in loans receivable | (149,080) | (1,410) |
Construction in progress and other | (8,399) | (26,898) |
Net cash (used for) provided by investing activities | (6,936) | 30,256 |
Financing activities | ||
Proceeds from term debt | 955,280 | |
Payments of term debt | (675,201) | |
Revolving credit facilities, net | (33,590) | 90,000 |
Distributions paid | (89,403) | (74,521) |
Lease deposits and other obligations to tenants | 1,299 | 3,307 |
Debt issuance costs paid and other financing activities | (1,643) | (15,882) |
Net cash (used for) provided by financing activities | (123,337) | 282,983 |
(Decrease) increase in cash, cash equivalents and restricted cash for period | (35,476) | 377,522 |
Effect of exchange rate changes | 2,774 | (10,083) |
Cash, cash equivalents and restricted cash at beginning of period | 172,247 | 84,882 |
Cash, cash equivalents and restricted cash at end of period | 139,545 | 452,321 |
Interest paid | 57,025 | 51,601 |
Supplemental schedule of non-cash financing activities: | ||
Distributions declared, unpaid | 91,410 | 77,172 |
Cash, cash equivalents and restricted cash are comprised of the following: | ||
Cash and cash equivalents at beginning of period | 171,472 | 83,240 |
Restricted cash, included in Other assets at beginning of period | 775 | 1,642 |
Cash, cash equivalents and restricted cash at beginning of period | 172,247 | 84,882 |
Cash and cash equivalents at end of period | 138,314 | 446,948 |
Restricted cash, included in Other assets at end of period | 1,231 | 5,373 |
Cash, cash equivalents and restricted cash at end of period | $ 139,545 | $ 452,321 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2018 | |
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 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 federal income tax in the United States (“U.S.”), provided that we continue to qualify as a REIT and our distributions to our stockholders equal or exceed our taxable income. Certain non-real estate activities we undertake are conducted by entities which we elected to be treated as taxable REIT subsidiaries (“TRS”). Our TRS entities are subject to both U.S. federal and state income taxes. For our properties located outside the U.S., we are subject to local taxes; however, we do not expect to incur additional taxes in the U.S. as such income flows 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. Our properties are located in the U.S. and Europe. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Unaudited Interim Condensed Consolidated Financial Statements : The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information, including rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2018, are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. The condensed consolidated balance sheet at December 31, 2017 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete 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, 2017. There have been no material changes to these significant accounting policies other than the following: On January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2017-01, “Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 provides an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, in which case, the transaction would be accounted for as an asset acquisition rather than as a business combination. In addition, ASU 2017-01 clarifies the requirements for a set of activities to be considered a business and narrows the definition of an output. With this accounting change, we expect to recognize a majority of our future real estate acquisitions as asset transactions rather than business combinations, which will result in the capitalization of third party transaction costs that are directly related to an acquisition and significantly decrease acquisition expenses. Indirect and internal transaction costs will continue to be expensed, but we do not expect to treat these costs as acquisition expenses for purposes of deriving normalized funds from operations in the future. Accordingly, this change in accounting increased our general and administrative expenses by $1.6 million for the three months ended March 31, 2018 compared to prior year. On January 1, 2018, we adopted 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. This standard should not have a significant impact on our financial results, as a substantial portion of our revenue consists of rental income from leasing arrangements and interest income from loans, which are specifically excluded from ASU No. 2014-09. However, we also adopted a related standard ASU No. 2017-05 “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets” on January 1, 2018, which we expect will allow for more transactions to qualify as sales of real estate with gains on sales being recognized earlier than under previous accounting guidance, as the new guidance is based on transfer of control versus whether or not the seller has continuing involvement. Upon adoption of this new standard, we recorded a $1.9 million adjustment to retained earnings to fully recognize gains on real estate sold in prior years that was required to be deferred under previous accounting guidance. In August and November 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on the classification of certain receipts and payments in the statements of cash flows and to require companies to separately disclose the changes in total cash, cash equivalents, and amounts generally described as restricted cash on statements of cash flows (ASU 2016-18). Restricted cash recorded in other assets on the condensed consolidated balance sheets includes certain operating deposits, tenant capital reserve deposits and deposits related to real estate acquisitions. This guidance was adopted on January 1, 2018 by applying a retrospective transition method resulting in the restatement of all periods presented. This change did not have a material impact on the statements of cash flows for the three months ended March 31, 2018 and March 31, 2017, respectively. Recent Accounting Developments: Leases In February 2016, FASB issued ASU 2016-02, “Leases”, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. We will adopt this new standard on January 1, 2019. We are continuing to evaluate this standard and the impact to us from both a lessor and lessee perspective. We do have leases in which we are the lessee, including ground leases, on which certain of our facilities reside, along with corporate office and equipment leases, that will be required to be recorded on our balance sheet upon adoption of this standard. From a lessor perspective, we do expect certain non-lease components (including certain operating expenses that the tenants of our facilities are required to pay pursuant to our “triple-net” leases) to be recorded gross versus net of the respective expenses upon adoption of this standard in 2019 in accordance with ASU No. 2014-09. Reclassifications and Revisions Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform to the current period presentation. Variable Interest Entities At March 31, 2018, we had loans to and/or equity investments in certain variable interest entities (“VIEs”), which are also tenants of our facilities. 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 March 31, 2018 (in thousands): VIE Type Maximum Loss Exposure(1) Asset Type Classification Carrying Amount(2) Loans, net $ 334,906 Mortgage and other loans $ 233,470 Equity investments $ 14,553 Other assets $ — (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 borrowers or investees) that most significantly impact the VIE’s economic performance. As of March 31, 2018, we were not required to provide financial support through a liquidity arrangement or otherwise to our unconsolidated VIEs, including circumstances in which they 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 and Note 5 for additional description of the nature, purpose and activities of our more significant VIEs (such as Ernest Health Inc. (“Ernest”)) and interests therein. |
Real Estate and Lending Activit
Real Estate and Lending Activities | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Real Estate and Lending Activities | 3. Real Estate and Lending Activities Acquisitions We acquired the following assets (in thousands): Three Months Ended March 31, 2018 2017 Assets Acquired Land $ — $ 1,230 Building — 6,901 Intangible lease assets — subject to amortization — 873 Total assets acquired $ — $ 9,004 On January 30, 2017, we acquired an inpatient rehabilitation hospital in Germany for €8.4 million. This acquisition was the final property to close as part of the six hospital portfolio that we agreed to buy in September 2016 for an aggregate amount of €44.1 million. This property is leased to affiliates of Median Kliniken S.à r.l. (“MEDIAN”) pursuant to the existing long-term master lease agreement reached with MEDIAN in 2015. Development Activities During the 2018 first quarter, we completed construction on Ernest Flagstaff. This $24 million inpatient rehabilitation facility located in Flagstaff, Arizona opened on March 1, 2018 and is being leased to Ernest pursuant to a stand-alone lease, with terms generally similar to the original master lease. See table below for a status update on our current development projects (in thousands): Property Commitment Costs Incurred as of March 31, 2018 Estimated Completion Date Circle Health (Birmingham, England) $ 45,211 $ 18,369 1Q 2019 Surgery Partners (Idaho Falls, Idaho) 113,468 16,753 1Q 2020 $ 158,679 $ 35,122 Disposals On March 1, 2018, we sold the real estate of St. Joseph Medical Center in Houston, Texas, for approximately $148 million to Steward Health Care System LLC (“Steward”). In return, we received a mortgage loan equal to the purchase price, with such loan secured by the underlying real estate. The mortgage loan has terms consistent with the other mortgage loans in the Steward portfolio. This transaction resulted in a gain of $1.5 million, offset by a $1.7 million non-cash charge to revenue to write-off related straight-line rent receivables on this property. On March 31, 2017, we sold the EASTAR Health System real estate located in Muskogee, Oklahoma, which was leased to RCCH Healthcare Partners (“RCCH”). Total proceeds from this transaction were approximately $64 million resulting in a gain of $7.4 million, partially offset by a $0.6 million non-cash charge to revenue to write-off related straight-line rent receivables on this property. Leasing Operations At March 31, 2018, leases on 14 Ernest facilities, ten Prime Healthcare Services, Inc. (“Prime”) facilities, and two Alecto Healthcare Services LLC (“Alecto”) facilities are accounted for as direct financing leases (“DFLs”). The components of our net investment in DFLs consisted of the following (in thousands): As of March 31, 2018 As of December 31, 2017 Minimum lease payments receivable $ 2,223,869 $ 2,294,081 Estimated residual values 434,769 448,339 Less: Unearned income (1,972,614 ) (2,043,693 ) Net investment in direct financing leases $ 686,024 $ 698,727 On March 15, 2018, we entered into a new lease agreement of our long-term acute care facility in Boise, Idaho with a joint venture formed by Vibra Healthcare, LLC (“Vibra”) and Ernest. The new lease has an initial 15-year fixed term (ending March 2033) with three extension options of five years each. With this transaction, we incurred a non-cash charge of $1.5 million to write-off DFL unbilled interest associated with the previous lease to Ernest on this property. Adeptus Health As noted in previous filings, we have 16 properties that we plan to re-lease to a new operator or sell. These properties are being transitioned away from Adeptus Health in stages over a two year period as part of Adeptus Health’s confirmed plan of reorganization under Chapter 11 of the Bankruptcy Code. Rent is being paid by Adeptus Health during this transition period. On January 1, 2018 and April 1, 2018, Adeptus Health vacated and stopped making rent payments on five and three properties, respectively. As a result of the shortening of our lease term on these and eight other properties, we recorded $1.8 million to accelerate straight-line rent receivable amortization in the 2018 first quarter. At March 31, 2018, Adeptus Health is current on its rent obligations to us. Although no assurances can be made that we will not recognize a loss in the future, we believe at March 31, 2018 that the sale or re-leasing of the assets related to these 16 transition facilities will not result in any material loss or impairment. Gilbert and Florence Facilities In the first quarter of 2018, we terminated the lease at our Gilbert and Florence, Arizona facilities due to the tenant not meeting its rent obligations pursuant to the lease. As a result of the lease terminating, we recorded a charge of $1.1 million to reserve against the straight-line rent receivables. This former tenant has continued to occupy the facility, but on April 25, 2018, this former tenant filed for involuntary bankruptcy. At March 31, 2018, all outstanding receivables were completely reserved. Although no assurances can be made that we will not have any impairment charges in the future, we believe our investment in Gilbert and Florence of $38.1 million at March 31, 2018, is fully recoverable. Loans The following is a summary of our loans (in thousands): As of March 31, 2018 As of December 31, 2017 Mortgage loans $ 1,927,393 $ 1,778,316 Acquisition loans 117,627 118,448 Working capital and other loans 31,215 31,761 $ 2,076,235 $ 1,928,525 The increase in mortgage loans relates to the St. Joseph property that was sold on March 1, 2018 – see “Disposals” section of this Note 3 for further information. Concentrations of Credit Risk Our revenue concentration for the three months ended March 31, 2018 as compared to the prior year is as follows (dollars in thousands): Revenue by Operator For the Three Months Ended March 31, 2018 2017 Operators Total Revenue Percentage of Total Revenue Total Revenue Percentage of Total Revenue Steward (1) $ 73,227 35.7 % $ 33,704 21.6 % Prime 31,778 15.5 % 31,511 20.1 % MEDIAN 29,088 14.2 % 23,450 15.0 % Ernest 16,416 8.0 % 17,520 11.2 % RCCH 9,537 4.7 % 9,306 6.0 % Other operators 45,000 21.9 % 40,906 26.1 % Total $ 205,046 100.0 % $ 156,397 100.0 % (1) Includes revenue from IASIS prior to being acquired by Steward on September 29, 2017. Revenue by U.S. State and Country For the Three Months Ended March 31, 2018 2017 U.S. States and Other Countries Total Revenue Percentage of Total Revenue Total Revenue Percentage of Total Revenue Texas $ 30,355 14.8 % $ 24,737 15.8 % Massachusetts 26,940 13.1 % 26,584 17.0 % Utah 20,871 10.2 % 2,534 1.6 % California 16,666 8.1 % 16,565 10.6 % Arizona 11,386 5.6 % 7,332 4.7 % All other states 60,037 29.3 % 51,465 32.9 % Total U.S. $ 166,255 81.1 % $ 129,217 82.6 % Germany $ 37,665 18.4 % $ 26,190 16.7 % United Kingdom, Italy, and Spain 1,126 0.5 % 990 0.7 % Total International $ 38,791 18.9 % $ 27,180 17.4 % Grand Total $ 205,046 100.0 % $ 156,397 100.0 % On a gross asset basis (as defined in the “Reconciliation of Non-GAAP Financial Measures” section of Item 2 of this Form 10-Q), our concentration as of March 31, 2018 as compared to December 31, 2017 is as follows (dollars in thousands): Gross Assets by Operator As of March 31, 2018 As of December 31, 2017 Operators Total Gross Assets Percentage of Total Gross Assets Total Gross Assets Percentage of Total Gross Assets Steward (1) $ 3,459,275 36.2 % $ 3,457,384 36.5 % MEDIAN 1,261,991 13.2 % 1,229,325 13.0 % Prime 1,120,737 11.7 % 1,119,484 11.8 % Ernest 612,112 6.4 % 629,161 6.6 % RCCH 506,265 5.3 % 506,265 5.3 % Other operators 2,118,132 22.3 % 2,089,934 22.1 % Other assets 466,095 4.9 % 444,659 4.7 % Total $ 9,544,607 100.0 % $ 9,476,212 100.0 % (1) Includes approximately $1.8 billion of triple net leased gross assets. Gross Assets by U.S. State and Country As of March 31, 2018 As of December 31, 2017 U.S. States and Other Countries Total Gross Assets Percentage of Total Gross Assets Total Gross Assets Percentage of Total Gross Assets Massachusetts $ 1,298,226 13.6 % $ 1,297,226 13.7 % Texas 1,260,795 13.2 % 1,257,390 13.3 % Utah 1,035,748 10.9 % 1,035,501 10.9 % California 542,873 5.7 % 542,876 5.7 % Arizona 489,185 5.1 % 491,284 5.2 % All other states 2,616,686 27.4 % 2,618,536 27.6 % Other domestic assets 402,841 4.2 % 387,050 4.1 % Total U.S. $ 7,646,354 80.1 % $ 7,629,863 80.5 % Germany $ 1,623,755 17.0 % $ 1,581,726 16.7 % United Kingdom, Italy, and Spain 211,244 2.2 % 207,014 2.2 % Other international assets 63,254 0.7 % 57,609 0.6 % Total International $ 1,898,253 19.9 % $ 1,846,349 19.5 % Grand Total $ 9,544,607 100.0 % $ 9,476,212 100.0 % On an individual property basis, we had no investment of any single property greater than 3.7% of our total gross assets as of March 31, 2018. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt The following is a summary of debt (dollar amounts in thousands): As of March 31, 2018 As of December 31, 2017 Revolving credit facility(A) $ 807,614 $ 840,810 Term loans 200,000 200,000 4.000% Senior Unsecured Notes due 2022(B) 616,200 600,250 5.500% Senior Unsecured Notes due 2024 300,000 300,000 6.375% Senior Unsecured Notes due 2024 500,000 500,000 3.325% Senior Unsecured Notes due 2025(B) 616,200 600,250 5.250% Senior Unsecured Notes due 2026 500,000 500,000 5.000% Senior Unsecured Notes due 2027 1,400,000 1,400,000 $ 4,940,014 $ 4,941,310 Debt issue costs, net (41,650 ) (42,643 ) $ 4,898,364 $ 4,898,667 (A) Includes £9 million and £8 million of GBP-denominated borrowings that reflect the exchange rate at March 31, 2018 and December 31, 2017, respectively. (B) These notes are Euro-denominated and reflect the exchange rate at March 31, 2018 and December 31, 2017, respectively. As of March 31, 2018, principal payments due on our debt (which exclude the effects of any discounts, premiums, or debt issue costs recorded) are as follows (in thousands): 2018 $ — 2019 — 2020 — 2021 807,614 2022 816,200 Thereafter 3,316,200 Total $ 4,940,014 On February 1, 2017, we replaced our previous unsecured credit facility (which we had entered into in 2014 and amended in 2015) with a new revolving credit and term loan agreement (“Credit Facility”). The new agreement included a $1.3 billion unsecured revolving loan facility (same amount as the previous revolving loan facility), a $200 million unsecured term loan facility ($50 million lower than the previous term loan), and a new €200 million unsecured term loan facility. On March 4, 2017, we redeemed the €200 million aggregate principal amount of our 5.750% Senior Unsecured Notes due 2020. On March 24, 2017, we completed a €500 million senior unsecured notes offering (“3.325% Senior Unsecured Notes due 2025”). A portion of the proceeds from this offering were used to prepay and extinguish the €200 million term loan facility portion of our Credit Facility on March 30, 2017. With the replacement of our old credit facility, the redemption of the 5.750% Senior Unsecured Notes due 2020, and the payoff of our €200 million euro term loan, we incurred a debt refinancing charge of approximately $14 million in the 2017 first quarter. 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 Credit Facility 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 March 31, 2018, the dividend restriction was 95% of normalized adjusted funds from operations (“NAFFO”). The indentures governing our senior unsecured notes also limit the amount of dividends we can pay based on the sum of 95% of NAFFO, 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 Credit Facility contains customary financial and operating covenants, including covenants relating to our total leverage ratio, fixed charge coverage ratio, secured leverage ratio, consolidated adjusted net worth, unsecured leverage ratio, and unsecured interest coverage ratio. This Credit 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 Credit Facility, the entire outstanding balance may become immediately due and payable. At March 31, 2018, we were in compliance with all such financial and operating covenants. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 5. 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. 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 using Level 2 inputs such as quotes from securities dealers and market makers. We estimate the fair value of our revolving credit facility and term loan 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): As of As of March 31, 2018 December 31, 2017 Asset (Liability) Book Value Fair Value Book Value Fair Value Interest and rent receivables $ 81,965 $ 81,009 $ 78,970 $ 78,028 Loans (1) 1,846,525 1,871,705 1,698,471 1,722,101 Debt, net (4,898,364 ) (4,968,232 ) (4,898,667 ) (5,073,707 ) (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 along with their related loans are 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 currently existing equity interests or loans. At March 31, 2018, these amounts were as follows (in thousands): Asset Type Fair Value Original Cost Asset Type Classification Mortgage loans $ 115,000 $ 115,000 Mortgage loans Equity investments and other loans 112,256 118,010 Other loans/other assets $ 227,256 $ 233,010 Our mortgage and other loans with Ernest are recorded at fair value based on Level 2 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 equity investment in Ernest is 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 the equity investment 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 the cash flow model, 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 March 31, 2018. 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) In Fair Value +100 basis points $ (9 ) - 100 basis points 9 Because the fair value of the Ernest investments noted above is below our original cost, we recognized an unrealized loss during the first quarter of 2018. No unrealized gain/loss on the Ernest investments was recorded in the first quarter of 2017. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 6. Earnings Per Share Medical Properties Trust, Inc. Our earnings per share were calculated based on the following (amounts in thousands): For the Three Months Ended March 31, 2018 2017 Numerator: Net income $ 91,043 $ 68,185 Non-controlling interests’ share in net income (442 ) (215 ) Participating securities’ share in earnings (195 ) (125 ) Net income, less participating securities’ share in earnings $ 90,406 $ 67,845 Denominator: Basic weighted-average common shares 364,882 321,057 Dilutive potential common shares 461 366 Dilutive weighted-average common shares 365,343 321,423 MPT Operating Partnership, L.P. Our earnings per common unit were calculated based on the following (amounts in thousands): For the Three Months Ended March 31, 2018 2017 Numerator: Net income $ 91,043 $ 68,185 Non-controlling interests’ share in net income (442 ) (215 ) Participating securities’ share in earnings (195 ) (125 ) Net income, less participating securities’ share in earnings $ 90,406 $ 67,845 Denominator: Basic weighted-average units 364,882 321,057 Dilutive potential units 461 366 Diluted weighted-average units 365,343 321,423 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Commitments On September 28, 2016, we entered into definitive agreements to acquire an acute care hospital in Washington for a purchase price of $17.5 million. Upon closing, the facility will be leased to RCCH, pursuant to the current master lease. Closing of this transaction, which is expected to be completed in 2018 is subject to customary real estate, regulatory and other closing conditions. 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. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Unaudited Interim Condensed Consolidated Financial Statements | Unaudited Interim Condensed Consolidated Financial Statements : The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information, including rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2018, are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. The condensed consolidated balance sheet at December 31, 2017 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete 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, 2017. There have been no material changes to these significant accounting policies other than the following: On January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2017-01, “Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 provides an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, in which case, the transaction would be accounted for as an asset acquisition rather than as a business combination. In addition, ASU 2017-01 clarifies the requirements for a set of activities to be considered a business and narrows the definition of an output. With this accounting change, we expect to recognize a majority of our future real estate acquisitions as asset transactions rather than business combinations, which will result in the capitalization of third party transaction costs that are directly related to an acquisition and significantly decrease acquisition expenses. Indirect and internal transaction costs will continue to be expensed, but we do not expect to treat these costs as acquisition expenses for purposes of deriving normalized funds from operations in the future. Accordingly, this change in accounting increased our general and administrative expenses by $1.6 million for the three months ended March 31, 2018 compared to prior year. On January 1, 2018, we adopted 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. This standard should not have a significant impact on our financial results, as a substantial portion of our revenue consists of rental income from leasing arrangements and interest income from loans, which are specifically excluded from ASU No. 2014-09. However, we also adopted a related standard ASU No. 2017-05 “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets” on January 1, 2018, which we expect will allow for more transactions to qualify as sales of real estate with gains on sales being recognized earlier than under previous accounting guidance, as the new guidance is based on transfer of control versus whether or not the seller has continuing involvement. Upon adoption of this new standard, we recorded a $1.9 million adjustment to retained earnings to fully recognize gains on real estate sold in prior years that was required to be deferred under previous accounting guidance. In August and November 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on the classification of certain receipts and payments in the statements of cash flows and to require companies to separately disclose the changes in total cash, cash equivalents, and amounts generally described as restricted cash on statements of cash flows (ASU 2016-18). Restricted cash recorded in other assets on the condensed consolidated balance sheets includes certain operating deposits, tenant capital reserve deposits and deposits related to real estate acquisitions. This guidance was adopted on January 1, 2018 by applying a retrospective transition method resulting in the restatement of all periods presented. This change did not have a material impact on the statements of cash flows for the three months ended March 31, 2018 and March 31, 2017, respectively. |
Recent Accounting Developments | Recent Accounting Developments: Leases In February 2016, FASB issued ASU 2016-02, “Leases”, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. We will adopt this new standard on January 1, 2019. We are continuing to evaluate this standard and the impact to us from both a lessor and lessee perspective. We do have leases in which we are the lessee, including ground leases, on which certain of our facilities reside, along with corporate office and equipment leases, that will be required to be recorded on our balance sheet upon adoption of this standard. From a lessor perspective, we do expect certain non-lease components (including certain operating expenses that the tenants of our facilities are required to pay pursuant to our “triple-net” leases) to be recorded gross versus net of the respective expenses upon adoption of this standard in 2019 in accordance with ASU No. 2014-09. |
Reclassifications and Revisions | Reclassifications and Revisions Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform to the current period presentation. |
Variable Interest Entities | Variable Interest Entities At March 31, 2018, we had loans to and/or equity investments in certain variable interest entities (“VIEs”), which are also tenants of our facilities. 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 March 31, 2018 (in thousands): VIE Type Maximum Loss Exposure(1) Asset Type Classification Carrying Amount(2) Loans, net $ 334,906 Mortgage and other loans $ 233,470 Equity investments $ 14,553 Other assets $ — (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 borrowers or investees) that most significantly impact the VIE’s economic performance. As of March 31, 2018, we were not required to provide financial support through a liquidity arrangement or otherwise to our unconsolidated VIEs, including circumstances in which they 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 and Note 5 for additional description of the nature, purpose and activities of our more significant VIEs (such as Ernest Health Inc. (“Ernest”)) and interests therein. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 (in thousands): VIE Type Maximum Loss Exposure(1) Asset Type Classification Carrying Amount(2) Loans, net $ 334,906 Mortgage and other loans $ 233,470 Equity investments $ 14,553 Other assets $ — (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. |
Real Estate and Lending Activ16
Real Estate and Lending Activities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Assets Acquired | We acquired the following assets (in thousands): Three Months Ended March 31, 2018 2017 Assets Acquired Land $ — $ 1,230 Building — 6,901 Intangible lease assets — subject to amortization — 873 Total assets acquired $ — $ 9,004 |
Summary of Status Update on Current Development Projects | See table below for a status update on our current development projects (in thousands): Property Commitment Costs Incurred as of March 31, 2018 Estimated Completion Date Circle Health (Birmingham, England) $ 45,211 $ 18,369 1Q 2019 Surgery Partners (Idaho Falls, Idaho) 113,468 16,753 1Q 2020 $ 158,679 $ 35,122 |
Components of Net Investment in Direct Financing Leases | The components of our net investment in DFLs consisted of the following (in thousands): As of March 31, 2018 As of December 31, 2017 Minimum lease payments receivable $ 2,223,869 $ 2,294,081 Estimated residual values 434,769 448,339 Less: Unearned income (1,972,614 ) (2,043,693 ) Net investment in direct financing leases $ 686,024 $ 698,727 |
Summary of Loans | The following is a summary of our loans (in thousands): As of March 31, 2018 As of December 31, 2017 Mortgage loans $ 1,927,393 $ 1,778,316 Acquisition loans 117,627 118,448 Working capital and other loans 31,215 31,761 $ 2,076,235 $ 1,928,525 |
Schedule of Revenue by Operator | Revenue by Operator For the Three Months Ended March 31, 2018 2017 Operators Total Revenue Percentage of Total Revenue Total Revenue Percentage of Total Revenue Steward (1) $ 73,227 35.7 % $ 33,704 21.6 % Prime 31,778 15.5 % 31,511 20.1 % MEDIAN 29,088 14.2 % 23,450 15.0 % Ernest 16,416 8.0 % 17,520 11.2 % RCCH 9,537 4.7 % 9,306 6.0 % Other operators 45,000 21.9 % 40,906 26.1 % Total $ 205,046 100.0 % $ 156,397 100.0 % (1) Includes revenue from IASIS prior to being acquired by Steward on September 29, 2017. |
Schedule of Revenue from External Customers by Geographic Areas | Revenue by U.S. State and Country For the Three Months Ended March 31, 2018 2017 U.S. States and Other Countries Total Revenue Percentage of Total Revenue Total Revenue Percentage of Total Revenue Texas $ 30,355 14.8 % $ 24,737 15.8 % Massachusetts 26,940 13.1 % 26,584 17.0 % Utah 20,871 10.2 % 2,534 1.6 % California 16,666 8.1 % 16,565 10.6 % Arizona 11,386 5.6 % 7,332 4.7 % All other states 60,037 29.3 % 51,465 32.9 % Total U.S. $ 166,255 81.1 % $ 129,217 82.6 % Germany $ 37,665 18.4 % $ 26,190 16.7 % United Kingdom, Italy, and Spain 1,126 0.5 % 990 0.7 % Total International $ 38,791 18.9 % $ 27,180 17.4 % Grand Total $ 205,046 100.0 % $ 156,397 100.0 % |
Schedule of Gross Assets by Operator | Gross Assets by Operator As of March 31, 2018 As of December 31, 2017 Operators Total Gross Assets Percentage of Total Gross Assets Total Gross Assets Percentage of Total Gross Assets Steward (1) $ 3,459,275 36.2 % $ 3,457,384 36.5 % MEDIAN 1,261,991 13.2 % 1,229,325 13.0 % Prime 1,120,737 11.7 % 1,119,484 11.8 % Ernest 612,112 6.4 % 629,161 6.6 % RCCH 506,265 5.3 % 506,265 5.3 % Other operators 2,118,132 22.3 % 2,089,934 22.1 % Other assets 466,095 4.9 % 444,659 4.7 % Total $ 9,544,607 100.0 % $ 9,476,212 100.0 % (1) Includes approximately $1.8 billion of triple net leased gross assets. |
Schedule of Gross Assets by Geographic Areas | Gross Assets by U.S. State and Country As of March 31, 2018 As of December 31, 2017 U.S. States and Other Countries Total Gross Assets Percentage of Total Gross Assets Total Gross Assets Percentage of Total Gross Assets Massachusetts $ 1,298,226 13.6 % $ 1,297,226 13.7 % Texas 1,260,795 13.2 % 1,257,390 13.3 % Utah 1,035,748 10.9 % 1,035,501 10.9 % California 542,873 5.7 % 542,876 5.7 % Arizona 489,185 5.1 % 491,284 5.2 % All other states 2,616,686 27.4 % 2,618,536 27.6 % Other domestic assets 402,841 4.2 % 387,050 4.1 % Total U.S. $ 7,646,354 80.1 % $ 7,629,863 80.5 % Germany $ 1,623,755 17.0 % $ 1,581,726 16.7 % United Kingdom, Italy, and Spain 211,244 2.2 % 207,014 2.2 % Other international assets 63,254 0.7 % 57,609 0.6 % Total International $ 1,898,253 19.9 % $ 1,846,349 19.5 % Grand Total $ 9,544,607 100.0 % $ 9,476,212 100.0 % |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following is a summary of debt (dollar amounts in thousands): As of March 31, 2018 As of December 31, 2017 Revolving credit facility(A) $ 807,614 $ 840,810 Term loans 200,000 200,000 4.000% Senior Unsecured Notes due 2022(B) 616,200 600,250 5.500% Senior Unsecured Notes due 2024 300,000 300,000 6.375% Senior Unsecured Notes due 2024 500,000 500,000 3.325% Senior Unsecured Notes due 2025(B) 616,200 600,250 5.250% Senior Unsecured Notes due 2026 500,000 500,000 5.000% Senior Unsecured Notes due 2027 1,400,000 1,400,000 $ 4,940,014 $ 4,941,310 Debt issue costs, net (41,650 ) (42,643 ) $ 4,898,364 $ 4,898,667 (A) Includes £9 million and £8 million of GBP-denominated borrowings that reflect the exchange rate at March 31, 2018 and December 31, 2017, respectively. (B) These notes are Euro-denominated and reflect the exchange rate at March 31, 2018 and December 31, 2017, respectively. |
Principal Payments Due on Debt | As of March 31, 2018, principal payments due on our debt (which exclude the effects of any discounts, premiums, or debt issue costs recorded) are as follows (in thousands): 2018 $ — 2019 — 2020 — 2021 807,614 2022 816,200 Thereafter 3,316,200 Total $ 4,940,014 |
Fair Value of Financial Instr18
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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): As of As of March 31, 2018 December 31, 2017 Asset (Liability) Book Value Fair Value Book Value Fair Value Interest and rent receivables $ 81,965 $ 81,009 $ 78,970 $ 78,028 Loans (1) 1,846,525 1,871,705 1,698,471 1,722,101 Debt, net (4,898,364 ) (4,968,232 ) (4,898,667 ) (5,073,707 ) (1) Excludes loans related to Ernest since they are recorded at fair value and discussed below. |
Equity Interest in Related Party and Related Loans Measured at Fair Value on Recurring Basis | At March 31, 2018, these amounts were as follows (in thousands): Asset Type Fair Value Original Cost Asset Type Classification Mortgage loans $ 115,000 $ 115,000 Mortgage loans Equity investments and other loans 112,256 118,010 Other loans/other assets $ 227,256 $ 233,010 |
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) In Fair Value +100 basis points $ (9 ) - 100 basis points 9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 Ended March 31, 2018 2017 Numerator: Net income $ 91,043 $ 68,185 Non-controlling interests’ share in net income (442 ) (215 ) Participating securities’ share in earnings (195 ) (125 ) Net income, less participating securities’ share in earnings $ 90,406 $ 67,845 Denominator: Basic weighted-average common shares 364,882 321,057 Dilutive potential common shares 461 366 Dilutive weighted-average common shares 365,343 321,423 MPT Operating Partnership, L.P. Our earnings per common unit were calculated based on the following (amounts in thousands): For the Three Months Ended March 31, 2018 2017 Numerator: Net income $ 91,043 $ 68,185 Non-controlling interests’ share in net income (442 ) (215 ) Participating securities’ share in earnings (195 ) (125 ) Net income, less participating securities’ share in earnings $ 90,406 $ 67,845 Denominator: Basic weighted-average units 364,882 321,057 Dilutive potential units 461 366 Diluted weighted-average units 365,343 321,423 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2018 | Mar. 31, 2018 |
Accounting Standards Update No. 2017-01 [Member] | General and Administrative Expenses [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Increase in general and administrative expenses | $ 1.6 | |
Accounting Standards Update 2014-09 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Adjustment to retained earnings | $ 1.9 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies - Carrying Value and Classification of Related Assets and Maximum Exposure to Loss (Detail) | Mar. 31, 2018USD ($) |
Mortgage and other loans [Member] | |
Variable Interest Entity [Line Items] | |
Carrying Amount | $ 233,470,000 |
Loans, net [Member] | |
Variable Interest Entity [Line Items] | |
Maximum Loss Exposure | 334,906,000 |
Equity investments [Member] | |
Variable Interest Entity [Line Items] | |
Maximum Loss Exposure | $ 14,553,000 |
Real Estate and Lending Activ22
Real Estate and Lending Activities - Assets Acquired (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Business Acquisition [Line Items] | |
Total assets acquired | $ 9,004 |
Land [Member] | |
Business Acquisition [Line Items] | |
Total assets acquired | 1,230 |
Building [Member] | |
Business Acquisition [Line Items] | |
Total assets acquired | 6,901 |
Intangible Lease Assets - Subject to Amortization [Member] | |
Business Acquisition [Line Items] | |
Total assets acquired | $ 873 |
Real Estate and Lending Activ23
Real Estate and Lending Activities - Acquisitions - Additional Information (Detail) - Germany [Member] - Rehabilitation Hospital with Covenant Health System [Member] € in Millions | Jan. 30, 2017EUR (€) | Jan. 30, 2017EUR (€)Hospital |
Business Acquisition [Line Items] | ||
Purchase price of acquisition | € | € 8.4 | € 44.1 |
Number of facilities acquired | Hospital | 6 |
Real Estate and Lending Activ24
Real Estate and Lending Activities - Development Activities - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Ernest [Member] | Development Activities [Member] | |
Business Acquisition [Line Items] | |
Estimated total development cost | $ 24 |
Real Estate and Lending Activ25
Real Estate and Lending Activities - Summary of Status Update on Current Development Projects (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |
Commitment | $ 158,679 |
Costs Incurred as of March 31, 2018 | 35,122 |
Circle Health [Member] | Birmingham, England [Member] | |
Business Acquisition [Line Items] | |
Commitment | 45,211 |
Costs Incurred as of March 31, 2018 | $ 18,369 |
Estimated Completion Date | 1Q 2019 |
Surgery Partners [Member] | Idaho Falls, ID [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 113,468 |
Costs Incurred as of March 31, 2018 | $ 16,753 |
Estimated Completion Date | 1Q 2020 |
Real Estate and Lending Activ26
Real Estate and Lending Activities - Disposals - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 01, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Debt Instrument [Line Items] | ||||
Net proceeds from sale of real estate | $ 148,809 | $ 64,335 | ||
Gain on real estate dispositions | $ 7,400 | |||
Gain offset by non-cash charges | 600 | |||
Proceeds from sale of facilities | $ 64,000 | |||
Steward Health Care System LLC [Member] | Houston, Texas [Member] | St. Joseph Medical Center [Member] | ||||
Debt Instrument [Line Items] | ||||
Net proceeds from sale of real estate | $ 148,000 | |||
Gain on real estate dispositions | 1,500 | |||
Gain offset by non-cash charges | $ 1,700 |
Real Estate and Lending Activ27
Real Estate and Lending Activities - Leasing Operations - Additional Information (Detail) $ in Millions | Mar. 15, 2018USD ($)RenewalOption | Mar. 31, 2018Lease |
Ernest [Member] | ||
Business Acquisition [Line Items] | ||
Number of direct financing leases | 14 | |
Prime Facilities [Member] | ||
Business Acquisition [Line Items] | ||
Number of direct financing leases | 10 | |
Alecto Healthcare Services [Member] | ||
Business Acquisition [Line Items] | ||
Number of direct financing leases | 2 | |
Vibra Healthcare, LLC [Member] | Acute Care Hospital [Member] | ||
Business Acquisition [Line Items] | ||
Term of lease, years | 15 years | |
Number of lease extension options | RenewalOption | 3 | |
Term of lease extension, years | 5 years | |
Write off of unbilled direct finance lease rent | $ | $ 1.5 |
Real Estate and Lending Activ28
Real Estate and Lending Activities - Components of Net Investment in Direct Financing Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Business Combinations [Abstract] | ||
Minimum lease payments receivable | $ 2,223,869 | $ 2,294,081 |
Estimated residual values | 434,769 | 448,339 |
Less: Unearned income | (1,972,614) | (2,043,693) |
Net investment in direct financing leases | $ 686,024 | $ 698,727 |
Real Estate and Lending Activ29
Real Estate and Lending Activities - Adeptus Health - Additional Information (Detail) - Adeptus Health [Member] $ in Millions | Apr. 01, 2018Property | Jan. 01, 2018Property | Mar. 31, 2018USD ($)PropertyFacility |
Business Acquisition [Line Items] | |||
Number of properties closed | 5 | ||
Number of properties | 8 | ||
Amortization of straight line rent receivable | $ | $ 1.8 | ||
Number of facilities expected to sell or re-lease | Facility | 16 | ||
Subsequent Event [Member] | |||
Business Acquisition [Line Items] | |||
Number of properties closed | 3 |
Real Estate and Lending Activ30
Real Estate and Lending Activities - Gilbert and Florence Facilities - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2018 |
Business Acquisition [Line Items] | ||
Gain offset by non-cash charges | $ 0.6 | |
Gilbert and Florence Facilities [Member] | ||
Business Acquisition [Line Items] | ||
Gain offset by non-cash charges | $ 1.1 | |
Total budgeted investment | $ 38.1 |
Real Estate and Lending Activ31
Real Estate and Lending Activities - Summary of Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Loans [Line Items] | ||
Loans, Balance | $ 2,076,235 | $ 1,928,525 |
Mortgage Loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | 1,927,393 | 1,778,316 |
Acquisition Loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | 117,627 | 118,448 |
Working Capital and Other Loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | $ 31,215 | $ 31,761 |
Real Estate and Lending Activ32
Real Estate and Lending Activities - Loans - Additional Information (Detail) $ in Millions | Mar. 31, 2018USD ($) |
Ernest Transaction and Other Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Existing mortgage loans | $ 113.9 |
Real Estate and Lending Activ33
Real Estate and Lending Activities - Schedule of Revenue by Operator (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Investment And Revenue From External Customers [Line Items] | |||
Total Revenue | $ 205,046 | $ 156,397 | |
Revenue [Member] | Credit Concentration Risk [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Revenue | $ 205,046 | $ 156,397 | |
Percentage of Total Revenue | 100.00% | 100.00% | |
Revenue [Member] | Prime [Member] | Credit Concentration Risk [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Revenue | $ 31,778 | $ 31,511 | |
Percentage of Total Revenue | 15.50% | 20.10% | |
Revenue [Member] | Steward [Member] | Credit Concentration Risk [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Revenue | [1] | $ 73,227 | $ 33,704 |
Percentage of Total Revenue | [1] | 35.70% | 21.60% |
Revenue [Member] | MEDIAN [Member] | Credit Concentration Risk [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Revenue | $ 29,088 | $ 23,450 | |
Percentage of Total Revenue | 14.20% | 15.00% | |
Revenue [Member] | Ernest [Member] | Credit Concentration Risk [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Revenue | $ 16,416 | $ 17,520 | |
Percentage of Total Revenue | 8.00% | 11.20% | |
Revenue [Member] | RCCH [Member] | Credit Concentration Risk [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Revenue | $ 9,537 | $ 9,306 | |
Percentage of Total Revenue | 4.70% | 6.00% | |
Revenue [Member] | Other Operators [Member] | Credit Concentration Risk [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Revenue | $ 45,000 | $ 40,906 | |
Percentage of Total Revenue | 21.90% | 26.10% | |
[1] | Includes revenue from IASIS prior to being acquired by Steward on September 29, 2017. |
Real Estate and Lending Activ34
Real Estate and Lending Activities - Schedule of Revenue from External Customers by Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Revenue | $ 205,046 | $ 156,397 |
Revenue [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Revenue | $ 205,046 | $ 156,397 |
Percentage of Total Revenue | 100.00% | 100.00% |
Revenue [Member] | Massachusetts [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Revenue | $ 26,940 | $ 26,584 |
Percentage of Total Revenue | 13.10% | 17.00% |
Revenue [Member] | Texas [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Revenue | $ 30,355 | $ 24,737 |
Percentage of Total Revenue | 14.80% | 15.80% |
Revenue [Member] | Utah [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Revenue | $ 20,871 | $ 2,534 |
Percentage of Total Revenue | 10.20% | 1.60% |
Revenue [Member] | California [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Revenue | $ 16,666 | $ 16,565 |
Percentage of Total Revenue | 8.10% | 10.60% |
Revenue [Member] | Arizona [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Revenue | $ 11,386 | $ 7,332 |
Percentage of Total Revenue | 5.60% | 4.70% |
Revenue [Member] | All Other States [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Revenue | $ 60,037 | $ 51,465 |
Percentage of Total Revenue | 29.30% | 32.90% |
Revenue [Member] | United States [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Revenue | $ 166,255 | $ 129,217 |
Percentage of Total Revenue | 81.10% | 82.60% |
Revenue [Member] | Germany [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Revenue | $ 37,665 | $ 26,190 |
Percentage of Total Revenue | 18.40% | 16.70% |
Revenue [Member] | United Kingdom, Italy, and Spain [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Revenue | $ 1,126 | $ 990 |
Percentage of Total Revenue | 0.50% | 0.70% |
Revenue [Member] | International [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Revenue | $ 38,791 | $ 27,180 |
Percentage of Total Revenue | 18.90% | 17.40% |
Real Estate and Lending Activ35
Real Estate and Lending Activities - Schedule of Gross Assets by Operator (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | ||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 9,031,840 | $ 9,020,288 | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 9,544,607 | $ 9,476,212 | |
Percentage of Total Gross Assets | 100.00% | 100.00% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Steward [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | [1] | $ 3,459,275 | $ 3,457,384 |
Percentage of Total Gross Assets | [1] | 36.20% | 36.50% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Prime [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 1,120,737 | $ 1,119,484 | |
Percentage of Total Gross Assets | 11.70% | 11.80% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | MEDIAN [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 1,261,991 | $ 1,229,325 | |
Percentage of Total Gross Assets | 13.20% | 13.00% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Ernest [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 612,112 | $ 629,161 | |
Percentage of Total Gross Assets | 6.40% | 6.60% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | RCCH [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 506,265 | $ 506,265 | |
Percentage of Total Gross Assets | 5.30% | 5.30% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Other Operators [Member] | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 2,118,132 | $ 2,089,934 | |
Percentage of Total Gross Assets | 22.30% | 22.10% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Other Assets Operators | |||
Investment And Revenue From External Customers [Line Items] | |||
Total Gross Assets | $ 466,095 | $ 444,659 | |
Percentage of Total Gross Assets | 4.90% | 4.70% | |
[1] | Includes approximately $1.8 billion of triple net leased gross assets. |
Real Estate and Lending Activ36
Real Estate and Lending Activities - Schedule of Gross Assets by Operator (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investment And Revenue From External Customers [Line Items] | ||
Total Gross Assets | $ 9,031,840 | $ 9,020,288 |
Mortgage Loans [Member] | Credit Concentration Risk [Member] | Steward [Member] | ||
Investment And Revenue From External Customers [Line Items] | ||
Total Gross Assets | $ 1,800,000 |
Real Estate and Lending Activ37
Real Estate and Lending Activities - Schedule of Gross Assets by Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 9,031,840 | $ 9,020,288 |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 9,544,607 | $ 9,476,212 |
Percentage of Total Gross Assets | 100.00% | 100.00% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Massachusetts [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,298,226 | $ 1,297,226 |
Percentage of Total Gross Assets | 13.60% | 13.70% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Texas [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,260,795 | $ 1,257,390 |
Percentage of Total Gross Assets | 13.20% | 13.30% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Utah [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,035,748 | $ 1,035,501 |
Percentage of Total Gross Assets | 10.90% | 10.90% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | California [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 542,873 | $ 542,876 |
Percentage of Total Gross Assets | 5.70% | 5.70% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Arizona [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 489,185 | $ 491,284 |
Percentage of Total Gross Assets | 5.10% | 5.20% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | All Other States [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 2,616,686 | $ 2,618,536 |
Percentage of Total Gross Assets | 27.40% | 27.60% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Other Domestic Assets [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 402,841 | $ 387,050 |
Percentage of Total Gross Assets | 4.20% | 4.10% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | United States [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 7,646,354 | $ 7,629,863 |
Percentage of Total Gross Assets | 80.10% | 80.50% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Germany [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,623,755 | $ 1,581,726 |
Percentage of Total Gross Assets | 17.00% | 16.70% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | United Kingdom, Italy, and Spain [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 211,244 | $ 207,014 |
Percentage of Total Gross Assets | 2.20% | 2.20% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Other International States | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 63,254 | $ 57,609 |
Percentage of Total Gross Assets | 0.70% | 0.60% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | International [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,898,253 | $ 1,846,349 |
Percentage of Total Gross Assets | 19.90% | 19.50% |
Real Estate and Lending Activ38
Real Estate and Lending Activities - Concentrations of Credit Risk - Additional Information (Detail) - Pro Forma [Member] - Total Gross Assets [Member] - Customer Concentration Risk [Member] | Mar. 31, 2018Investment |
Business Acquisition [Line Items] | |
Number of investment in property | 0 |
Maximum percentage of entity's gross assets invested on single property | 3.70% |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Debt | $ 4,940,014 | $ 4,941,310 | |
Debt issue costs, net | (41,650) | (42,643) | |
Debt, net | 4,898,364 | 4,898,667 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 807,614 | 840,810 |
Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 200,000 | 200,000 | |
4.000% Senior Unsecured Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [2] | 616,200 | 600,250 |
5.500% Senior Unsecured Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 300,000 | 300,000 | |
3.325% Senior Unsecured Notes Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [2] | 616,200 | 600,250 |
6.375% Senior Unsecured Notes due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 500,000 | 500,000 | |
5.250% Senior Unsecured Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 500,000 | 500,000 | |
5.000% Senior Unsecured Notes Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | $ 1,400,000 | $ 1,400,000 | |
[1] | Includes £9 million and £8 million of GBP-denominated borrowings that reflect the exchange rate at March 31, 2018 and December 31, 2017, respectively. | ||
[2] | These notes are Euro-denominated and reflect the exchange rate at March 31, 2018 and December 31, 2017, respectively. |
Debt - Summary of Debt (Parenth
Debt - Summary of Debt (Parenthetical) (Detail) $ in Thousands, £ in Millions | Mar. 31, 2018USD ($) | Mar. 31, 2018GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Mar. 24, 2017 | |||
Debt Instrument [Line Items] | ||||||||
Debt | $ 4,940,014 | $ 4,941,310 | ||||||
GBP-denominated Borrowings [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt | £ | £ 9 | £ 8 | ||||||
4.000% Senior Unsecured Notes due 2022 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior unsecured notes, interest rate | [1] | 4.00% | 4.00% | |||||
Debt | [1] | $ 616,200 | 600,250 | |||||
5.500% Senior Unsecured Notes Due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior unsecured notes, interest rate | 5.50% | 5.50% | ||||||
Debt | $ 300,000 | 300,000 | ||||||
6.375% Senior Unsecured Notes due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior unsecured notes, interest rate | 6.375% | 6.375% | ||||||
Debt | $ 500,000 | 500,000 | ||||||
3.325% Senior Unsecured Notes Due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior unsecured notes, interest rate | 3.325% | [1] | 3.325% | [1] | 3.325% | |||
Debt | [1] | $ 616,200 | 600,250 | |||||
5.000% Senior Unsecured Notes Due 2027 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior unsecured notes, interest rate | 5.00% | 5.00% | ||||||
Debt | $ 1,400,000 | 1,400,000 | ||||||
5.250% Senior Unsecured Notes Due 2026 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior unsecured notes, interest rate | 5.25% | 5.25% | ||||||
Debt | $ 500,000 | $ 500,000 | ||||||
[1] | These notes are Euro-denominated and reflect the exchange rate at March 31, 2018 and December 31, 2017, respectively. |
Debt - Principal Payments Due f
Debt - Principal Payments Due for Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,021 | $ 807,614 | |
2,022 | 816,200 | |
Thereafter | 3,316,200 | |
Total | $ 4,940,014 | $ 4,941,310 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Thousands | Mar. 30, 2017EUR (€) | Mar. 04, 2017EUR (€) | Feb. 01, 2017USD ($) | Mar. 31, 2018 | Mar. 31, 2017USD ($) | Mar. 24, 2017EUR (€) | Feb. 01, 2017EUR (€) | |
Debt Instrument [Line Items] | ||||||||
Debt refinancing charge | $ 13,629 | |||||||
5.750% Senior Unsecured Notes Due 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes, redemption date | Mar. 4, 2017 | |||||||
Amount of senior unsecured debt redeemed | € | € 200,000,000 | |||||||
Senior unsecured notes, interest rate | 5.75% | |||||||
Senior unsecured notes, redemption description | On March 4, 2017, we redeemed the €200 million aggregate principal amount of our 5.750% Senior Unsecured Notes due 2020 | |||||||
Debt refinancing charge | $ 14,000 | |||||||
3.325% Senior Unsecured Notes Due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior unsecured notes, interest rate | 3.325% | [1] | 3.325% | |||||
Senior unsecured notes face amount | € | € 500,000,000 | |||||||
Unsecured Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of senior unsecured debt | $ 1,300,000 | |||||||
Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of senior unsecured debt | 200,000 | € 200,000,000 | ||||||
Decrease in unsecured debt from previous facility | $ 50,000 | |||||||
Prepaid and extinguished term loans | € | € 200,000,000 | |||||||
[1] | These notes are Euro-denominated and reflect the exchange rate at March 31, 2018 and December 31, 2017, respectively. |
Debt - Covenants - Additional I
Debt - Covenants - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
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% |
Fair Value of Financial Instr44
Fair Value of Financial Instruments - Summary of Fair Value Information of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Interest and rent receivables, Book value | $ 81,965 | $ 78,970 |
Loans, Book value | 1,846,525 | 1,698,471 |
Debt, net Book value | (4,898,364) | (4,898,667) |
Interest and rent receivables, Fair value | 81,009 | 78,028 |
Loans, Fair value | 1,871,705 | 1,722,101 |
Debt, net Fair value | $ (4,968,232) | $ (5,073,707) |
Fair Value of Financial Instr45
Fair Value of Financial Instruments - Equity Interest in Related Party and Related Loans Measured at Fair Value on Recurring Basis (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | $ 227,256 |
Original Cost | 233,010 |
Fair Value Measurements, Recurring [Member] | Equity Method Investments and Other Loans [Member] | Other Loans and Other Assets [Member] | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | 112,256 |
Original Cost | 118,010 |
Fair Value Measurements, Recurring [Member] | Mortgage Loans [Member] | Mortgage Loans [Member] | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | 115,000 |
Original Cost | $ 115,000 |
Fair Value of Financial Instr46
Fair Value of Financial Instruments - Additional information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjustment for DLOM on our equity investment | 40.00% | |
Ernest [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Unrealized gain/loss on investments | $ 0 |
Fair Value of Financial Instr47
Fair Value of Financial Instruments - Summary Showing Sensitivity Analysis by Using Basis Point Variations (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |
Estimated Increase (Decrease) In Fair Value of Financial Instruments plus 100 basis points | $ (9) |
Estimated Increase (Decrease) In Fair Value of Financial Instruments minus 100 basis points | $ 9 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Earnings Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 91,043 | $ 68,185 |
Non-controlling interests’ share in net income | (442) | (215) |
Participating securities’ share in earnings | (195) | (125) |
Net income, less participating securities’ share in earnings | $ 90,406 | $ 67,845 |
Basic weighted-average common shares | 364,882 | 321,057 |
Dilutive potential common shares | 461 | 366 |
Dilutive weighted-average common shares | 365,343 | 321,423 |
MPT Operating Partnership, L.P. [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 91,043 | $ 68,185 |
Non-controlling interests’ share in net income | (442) | (215) |
Participating securities’ share in earnings | (195) | (125) |
Net income, less participating securities’ share in earnings | $ 90,406 | $ 67,845 |
Basic weighted-average common shares | 364,882 | 321,057 |
Dilutive potential common shares | 461 | 366 |
Dilutive weighted-average common shares | 365,343 | 321,423 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Sep. 28, 2016USD ($) |
Washington and Idaho [Member] | Acute Care Hospital [Member] | |
Commitment And Contingencies [Line Items] | |
Purchase price of acquisition | $ 17.5 |