Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MPW | |
Entity Registrant Name | MEDICAL PROPERTIES TRUST INC | |
Entity Central Index Key | 0001287865 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 394,424,343 | |
MPT Operating Partnership, L.P. [Member] | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | MPT OPERATING PARTNERSHIP, L.P. | |
Entity Central Index Key | 0001524607 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Real estate assets | ||
Land, buildings and improvements, intangible lease assets, and other | $ 5,394,092 | $ 5,268,459 |
Mortgage loans | 1,214,780 | 1,213,322 |
Net investment in direct financing leases | 684,547 | 684,053 |
Gross investment in real estate assets | 7,293,419 | 7,165,834 |
Accumulated depreciation and amortization | (498,915) | (464,984) |
Net investment in real estate assets | 6,794,504 | 6,700,850 |
Cash and cash equivalents | 995,548 | 820,868 |
Interest and rent receivables | 24,788 | 25,855 |
Straight-line rent receivables | 243,556 | 220,848 |
Equity investments | 506,123 | 520,058 |
Other loans | 365,402 | 373,198 |
Other assets | 301,532 | 181,966 |
Total Assets | 9,231,453 | 8,843,643 |
Liabilities | ||
Debt, net | 4,023,568 | 4,037,389 |
Accounts payable and accrued expenses | 188,956 | 204,325 |
Deferred revenue | 9,979 | 13,467 |
Obligations to tenants and other lease liabilities | 118,474 | 27,524 |
Total Liabilities | 4,340,977 | 4,282,705 |
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 — 391,839 shares at March 31, 2019 and 370,637 shares at December 31, 2018 | 392 | 371 |
Limited Partners: | ||
Additional paid-in capital | 4,803,672 | 4,442,948 |
Retained earnings | 141,427 | 162,768 |
Accumulated other comprehensive loss | (67,892) | (58,202) |
Treasury shares, at cost | (777) | (777) |
Total Medical Properties Trust, Inc. Stockholders' Equity (MPT Operating Partnership, L.P. capital) | 4,876,822 | 4,547,108 |
Non-controlling interests | 13,654 | 13,830 |
Total Equity / Capital | 4,890,476 | 4,560,938 |
Total Liabilities and Equity / Capital | 9,231,453 | 8,843,643 |
MPT Operating Partnership, L.P. [Member] | ||
Real estate assets | ||
Land, buildings and improvements, intangible lease assets, and other | 5,394,092 | 5,268,459 |
Mortgage loans | 1,214,780 | 1,213,322 |
Net investment in direct financing leases | 684,547 | 684,053 |
Gross investment in real estate assets | 7,293,419 | 7,165,834 |
Accumulated depreciation and amortization | (498,915) | (464,984) |
Net investment in real estate assets | 6,794,504 | 6,700,850 |
Cash and cash equivalents | 995,548 | 820,868 |
Interest and rent receivables | 24,788 | 25,855 |
Straight-line rent receivables | 243,556 | 220,848 |
Equity investments | 506,123 | 520,058 |
Other loans | 365,402 | 373,198 |
Other assets | 301,532 | 181,966 |
Total Assets | 9,231,453 | 8,843,643 |
Liabilities | ||
Debt, net | 4,023,568 | 4,037,389 |
Accounts payable and accrued expenses | 91,461 | 108,574 |
Deferred revenue | 9,979 | 13,467 |
Obligations to tenants and other lease liabilities | 118,474 | 27,524 |
Payable due to Medical Properties Trust, Inc. | 97,105 | 95,361 |
Total Liabilities | 4,340,587 | 4,282,315 |
Limited Partners: | ||
Accumulated other comprehensive loss | (67,892) | (58,202) |
Total Medical Properties Trust, Inc. Stockholders' Equity (MPT Operating Partnership, L.P. capital) | 4,877,212 | 4,547,498 |
Non-controlling interests | 13,654 | 13,830 |
Total Equity / Capital | 4,890,866 | 4,561,328 |
Total Liabilities and Equity / Capital | 9,231,453 | 8,843,643 |
General Partner [Member] | MPT Operating Partnership, L.P. [Member] | ||
Equity / Capital | ||
General Partner — issued and outstanding — 3,647 units at March 31, 2018and 3,644 units at December 31, 2017 | 49,478 | 46,084 |
Limited Partners: | ||
Total Equity / Capital | 49,478 | 46,084 |
Common Units [Member] | MPT Operating Partnership, L.P. [Member] | ||
Limited Partners: | ||
Limited Partners Capital | $ 4,895,626 | $ 4,559,616 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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 | 391,839,000 | 370,637,000 |
Common stock, shares outstanding | 391,839,000 | 370,637,000 |
General Partner [Member] | MPT Operating Partnership, L.P. [Member] | ||
General partner, units issued | 3,918,000 | 3,706,000 |
General partner, units outstanding | 3,918,000 | 3,706,000 |
Common Units [Member] | MPT Operating Partnership, L.P. [Member] | ||
Limited Partners, units issued | 387,921,000 | 366,931,000 |
Limited Partners, units outstanding | 387,921,000 | 366,931,000 |
LTIP Units [Member] | MPT Operating Partnership, L.P. [Member] | ||
LTIP Units, shares issued | 232,000 | 232,000 |
LTIP Units, shares outstanding | 232,000 | 232,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Net Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Rent billed | $ 108,598 | $ 128,011 |
Straight-line rent | 20,651 | 15,791 |
Income from direct financing leases | 17,280 | 17,681 |
Interest and other income | 33,925 | 43,563 |
Total revenues | 180,454 | 205,046 |
Expenses | ||
Interest | 50,551 | 57,023 |
Real estate depreciation and amortization | 33,352 | 35,802 |
Property-related | 3,066 | 2,184 |
General and administrative | 23,451 | 17,818 |
Total expenses | 110,420 | 112,827 |
Other income (expense) | ||
Gain on sale of real estate, net | 1,467 | |
Earnings from equity interests | 3,720 | 3,271 |
Other | 204 | (4,739) |
Total other income (expense) | 3,924 | (1) |
Income before income tax | 73,958 | 92,218 |
Income tax benefit (expense) | 2,333 | (1,175) |
Net income | 76,291 | 91,043 |
Net income attributable to non-controlling interests | (469) | (442) |
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 75,822 | $ 90,601 |
Earnings per common share (units) — basic and diluted | ||
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 0.20 | $ 0.25 |
Weighted average shares (units) outstanding — basic | 380,551 | 364,882 |
Weighted average shares (units) outstanding — diluted | 381,675 | 365,343 |
Dividends declared per common share (unit) | $ 0.25 | $ 0.25 |
MPT Operating Partnership, L.P. [Member] | ||
Revenues | ||
Rent billed | $ 108,598 | $ 128,011 |
Straight-line rent | 20,651 | 15,791 |
Income from direct financing leases | 17,280 | 17,681 |
Interest and other income | 33,925 | 43,563 |
Total revenues | 180,454 | 205,046 |
Expenses | ||
Interest | 50,551 | 57,023 |
Real estate depreciation and amortization | 33,352 | 35,802 |
Property-related | 3,066 | 2,184 |
General and administrative | 23,451 | 17,818 |
Total expenses | 110,420 | 112,827 |
Other income (expense) | ||
Gain on sale of real estate, net | 1,467 | |
Earnings from equity interests | 3,720 | 3,271 |
Other | 204 | (4,739) |
Total other income (expense) | 3,924 | (1) |
Income before income tax | 73,958 | 92,218 |
Income tax benefit (expense) | 2,333 | (1,175) |
Net income | 76,291 | 91,043 |
Net income attributable to non-controlling interests | (469) | (442) |
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 75,822 | $ 90,601 |
Earnings per common share (units) — basic and diluted | ||
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 0.20 | $ 0.25 |
Weighted average shares (units) outstanding — basic | 380,551 | 364,882 |
Weighted average shares (units) outstanding — diluted | 381,675 | 365,343 |
Dividends declared per common share (unit) | $ 0.25 | $ 0.25 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 76,291 | $ 91,043 |
Other comprehensive income: | ||
Unrealized loss on interest rate swap | (3,772) | |
Foreign currency translation (loss) gain | (5,918) | 16,088 |
Total comprehensive income | 66,601 | 107,131 |
Comprehensive income attributable to non-controlling interests | (469) | (442) |
Comprehensive income attributable to MPT common stockholders (Operating Partnership Partners) | 66,132 | 106,689 |
MPT Operating Partnership, L.P. [Member] | ||
Net income | 76,291 | 91,043 |
Other comprehensive income: | ||
Unrealized loss on interest rate swap | (3,772) | |
Foreign currency translation (loss) gain | (5,918) | 16,088 |
Total comprehensive income | 66,601 | 107,131 |
Comprehensive income attributable to non-controlling interests | (469) | (442) |
Comprehensive income attributable to MPT common stockholders (Operating Partnership Partners) | $ 66,132 | $ 106,689 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity / Capital - USD ($) shares in Thousands, $ in Thousands | Total | MPT Operating Partnership, L.P. [Member] | MPT Operating Partnership, L.P. [Member]General Partner [Member] | Common Par Value [Member] | Common Par Value [Member]MPT Operating Partnership, L.P. [Member]Limited Partner [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member]MPT Operating Partnership, L.P. [Member] | Treasury Shares [Member] | Non-Controlling Interests [Member] | Non-Controlling Interests [Member]MPT Operating Partnership, L.P. [Member] | Long Term Incentive Plan [Member]MPT Operating Partnership, L.P. [Member]Limited Partner [Member] |
Beginning balance at Dec. 31, 2017 | $ 3,835,205 | $ 3,835,595 | $ 38,489 | $ 364 | $ 3,808,583 | $ 4,333,027 | $ (485,932) | $ (26,049) | $ (26,049) | $ (777) | $ 14,572 | $ 14,572 | |
Beginning balance (in shares) at Dec. 31, 2017 | 3,644 | 364,424 | 360,780 | 292 | |||||||||
Net income | 91,043 | 91,043 | $ 906 | $ 89,695 | 90,601 | 442 | 442 | ||||||
Cumulative effect of change in accounting principles | 1,938 | 1,938 | 19 | 1,919 | 1,938 | ||||||||
Foreign currency translation gain (loss) | 16,088 | 16,088 | 16,088 | 16,088 | |||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation | 1,856 | 1,856 | $ 19 | $ 1 | $ 1,837 | 1,855 | |||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation (shares) | 3 | 271 | 268 | ||||||||||
Conversion of LTIP units to common units (shares) | 60 | (60) | |||||||||||
Redemption of MOP units/common units | (816) | (816) | $ (816) | (816) | |||||||||
Redemption of MOP units/common units (shares) | (60) | ||||||||||||
Distributions to non-controlling interests | (620) | (620) | (620) | (620) | |||||||||
Proceeds from offering (net of offering costs) | (94) | (94) | $ (1) | $ (93) | (94) | ||||||||
Dividends (Distributions) declared ($0.25 in 2018 and $0.25 in 2019 per common share/ unit) | (91,411) | (91,411) | (914) | (90,497) | (91,411) | ||||||||
Ending balance at Mar. 31, 2018 | 3,853,189 | 3,853,579 | $ 38,518 | $ 365 | $ 3,810,628 | 4,333,972 | (484,804) | (9,961) | (9,961) | (777) | 14,394 | 14,394 | |
Ending balance (in shares) at Mar. 31, 2018 | 3,647 | 364,695 | 361,048 | 232 | |||||||||
Beginning balance at Dec. 31, 2018 | 4,560,938 | 4,561,328 | $ 46,084 | $ 371 | $ 4,559,616 | 4,442,948 | 162,768 | (58,202) | (58,202) | (777) | 13,830 | 13,830 | |
Beginning balance (in shares) at Dec. 31, 2018 | 3,706 | 370,637 | 366,931 | 232 | |||||||||
Net income | 76,291 | 76,291 | $ 758 | $ 75,064 | 75,822 | 469 | 469 | ||||||
Unrealized loss on interest rate swap | (3,772) | (3,772) | (3,772) | (3,772) | |||||||||
Foreign currency translation gain (loss) | (5,918) | (5,918) | (5,918) | (5,918) | |||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation | 6,715 | 6,715 | $ 68 | $ 1 | $ 6,647 | 6,714 | |||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation (shares) | 11 | 1,055 | 1,044 | ||||||||||
Distributions to non-controlling interests | (645) | (645) | (645) | (645) | |||||||||
Proceeds from offering (net of offering costs) | 354,030 | 354,030 | $ 3,540 | $ 20 | $ 350,490 | 354,010 | |||||||
Proceeds from offering (net of offering costs) (shares) | 201 | 20,147 | 19,946 | ||||||||||
Dividends (Distributions) declared ($0.25 in 2018 and $0.25 in 2019 per common share/ unit) | (97,163) | (97,163) | $ (972) | $ (96,191) | (97,163) | ||||||||
Ending balance at Mar. 31, 2019 | $ 4,890,476 | $ 4,890,866 | $ 49,478 | $ 392 | $ 4,895,626 | $ 4,803,672 | $ 141,427 | $ (67,892) | $ (67,892) | $ (777) | $ 13,654 | $ 13,654 | |
Ending balance (in shares) at Mar. 31, 2019 | 3,918 | 391,839 | 387,921 | 232 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity / Capital (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Dividends (Distributions) declared per common share / unit | $ 0.25 | $ 0.25 |
MPT Operating Partnership, L.P. [Member] | ||
Dividends (Distributions) declared per common share / unit | 0.25 | 0.25 |
MPT Operating Partnership, L.P. [Member] | General Partner [Member] | ||
Dividends (Distributions) declared per common share / unit | 0.25 | 0.25 |
Retained Earnings (Deficit) [Member] | ||
Dividends (Distributions) declared per common share / unit | 0.25 | 0.25 |
Common Par Value [Member] | MPT Operating Partnership, L.P. [Member] | Limited Partner [Member] | ||
Dividends (Distributions) declared per common share / unit | $ 0.25 | $ 0.25 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net income | $ 76,291 | $ 91,043 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 34,675 | 37,858 |
Amortization of deferred financing costs and debt discount | 1,827 | 1,789 |
Direct financing lease interest accretion | (2,337) | (2,340) |
Straight-line rent revenue | (23,959) | (20,377) |
Share / (Unit)-based compensation expense | 6,715 | 1,856 |
Gain from sale of real estate, net | (1,467) | |
Straight-line rent and other write-off, net of tax benefit | 2,596 | 6,059 |
Other adjustments | 2,249 | (3,217) |
Changes in: | ||
Interest and rent receivables | (1,193) | (3,678) |
Accounts payable and accrued expenses | (9,940) | (12,729) |
Net cash provided by operating activities | 86,924 | 94,797 |
Investing activities | ||
Cash paid for acquisitions and other related investments | (6,492) | |
Net proceeds from sale of real estate | 148,809 | |
Principal received on loans receivable | 420 | 1,734 |
Investment in loans receivable | (1,185) | (149,080) |
Construction in progress and other | (160,736) | (8,399) |
Net cash used for investing activities | (167,993) | (6,936) |
Financing activities | ||
Revolving credit facilities, net | 9,097 | (33,590) |
Distributions paid | (95,419) | (89,403) |
Lease deposits and other obligations to tenants | 3,677 | 1,299 |
Proceeds from sale of common shares, net of offering costs | 354,030 | (94) |
Debt issuance costs paid and other financing activities | (677) | (1,549) |
Net cash provided by (used for) financing activities | 270,708 | (123,337) |
Increase (decrease) in cash, cash equivalents and restricted cash for period | 189,639 | (35,476) |
Effect of exchange rate changes | (11,450) | 2,774 |
Cash, cash equivalents and restricted cash at beginning of period | 822,425 | 172,247 |
Cash, cash equivalents and restricted cash at end of period | 1,000,614 | 139,545 |
Interest paid | 51,296 | 57,025 |
Supplemental schedule of non-cash financing activities: | ||
Distributions declared, unpaid | 97,163 | 91,411 |
Cash, cash equivalents and restricted cash are comprised of the following: | ||
Cash and cash equivalents at beginning of period | 820,868 | 171,472 |
Restricted cash, included in Other assets at beginning of period | $ 1,557 | $ 775 |
Restricted cash and cash equivalents, noncurrent, asset, statement of financial position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Cash, cash equivalents and restricted cash at beginning of period | $ 822,425 | $ 172,247 |
Cash and cash equivalents at end of period | 995,548 | 138,314 |
Restricted cash, included in Other assets at end of period | $ 5,066 | $ 1,231 |
Restricted cash and cash equivalents, noncurrent, asset, statement of financial position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Cash, cash equivalents and restricted cash at end of period | $ 1,000,614 | $ 139,545 |
MPT Operating Partnership, L.P. [Member] | ||
Operating activities | ||
Net income | 76,291 | 91,043 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 34,675 | 37,858 |
Amortization of deferred financing costs and debt discount | 1,827 | 1,789 |
Direct financing lease interest accretion | (2,337) | (2,340) |
Straight-line rent revenue | (23,959) | (20,377) |
Share / (Unit)-based compensation expense | 6,715 | 1,856 |
Gain from sale of real estate, net | (1,467) | |
Straight-line rent and other write-off, net of tax benefit | 2,596 | 6,059 |
Other adjustments | 2,249 | (3,217) |
Changes in: | ||
Interest and rent receivables | (1,193) | (3,678) |
Accounts payable and accrued expenses | (9,940) | (12,729) |
Net cash provided by operating activities | 86,924 | 94,797 |
Investing activities | ||
Cash paid for acquisitions and other related investments | (6,492) | |
Net proceeds from sale of real estate | 148,809 | |
Principal received on loans receivable | 420 | 1,734 |
Investment in loans receivable | (1,185) | (149,080) |
Construction in progress and other | (160,736) | (8,399) |
Net cash used for investing activities | (167,993) | (6,936) |
Financing activities | ||
Revolving credit facilities, net | 9,097 | (33,590) |
Distributions paid | (95,419) | (89,403) |
Lease deposits and other obligations to tenants | 3,677 | 1,299 |
Proceeds from sale of units, net of offering costs | 354,030 | (94) |
Debt issuance costs paid and other financing activities | (677) | (1,549) |
Net cash provided by (used for) financing activities | 270,708 | (123,337) |
Increase (decrease) in cash, cash equivalents and restricted cash for period | 189,639 | (35,476) |
Effect of exchange rate changes | (11,450) | 2,774 |
Cash, cash equivalents and restricted cash at beginning of period | 822,425 | 172,247 |
Cash, cash equivalents and restricted cash at end of period | 1,000,614 | 139,545 |
Interest paid | 51,296 | 57,025 |
Supplemental schedule of non-cash financing activities: | ||
Distributions declared, unpaid | 97,163 | 91,411 |
Cash, cash equivalents and restricted cash are comprised of the following: | ||
Cash and cash equivalents at beginning of period | 820,868 | 171,472 |
Restricted cash, included in Other assets at beginning of period | $ 1,557 | $ 775 |
Restricted cash and cash equivalents, noncurrent, asset, statement of financial position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Cash, cash equivalents and restricted cash at beginning of period | $ 822,425 | $ 172,247 |
Cash and cash equivalents at end of period | 995,548 | 138,314 |
Restricted cash, included in Other assets at end of period | $ 5,066 | $ 1,231 |
Restricted cash and cash equivalents, noncurrent, asset, statement of financial position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Cash, cash equivalents and restricted cash at end of period | $ 1,000,614 | $ 139,545 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2019 | |
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 healthcare 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 the local taxes of the jurisdictions where our properties reside and/or legal entities are domiciled; 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, and long-term acute care hospitals. We also make mortgage and other loans to operators of similar facilities. In addition, we may obtain profits or equity interests in our tenants, from time to time, in order to enhance our overall return. We manage our business as a single business segment. All of our properties are currently located in the U.S. and Europe. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The condensed consolidated balance sheet at December 31, 2018 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, 2018. There have been no material changes to these significant accounting policies other than the following: On January 1, 2019, we adopted Accounting Standards Update (“ASU”) 2016-02, “Leases”, (“ASU 2016-02”). ASU 2016-02 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). We adopted this standard using the modified retrospective approach and have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, permits the following: no reassessment of whether existing contracts are or contain a lease; no reassessment of lease classification for existing leases; and no reassessment of initial direct costs for existing leases. Additionally, we made certain elections permitted in accordance with ASU 2018-11, “Leases (Topic 842): – Targeted Improvements.” which (1) permits entities to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in its financial statements and (2) permits lessors to account for lease and non-lease components as a single lease component in a contract if certain criteria are met. The 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 (for finance leases) or on a straight-line basis (for operating leases) 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 remain off balance sheet with lease expense recognized on a straight-line basis over the lease term, similar to previous guidance for operating leases. The standard requires lessors to account for leases using an approach that is substantially equivalent to previous guidance for sales-type leases, direct financing leases and operating leases. For our leases in which we are the lessee, including ground leases on which certain of our facilities reside, along with corporate office and equipment leases, we recorded a right-of-use asset and offsetting lease liability of approximately $84 million upon adoption of this standard – resulting in no material cumulative effect adjustment. From a lessor perspective, we did not change the classification or accounting of our existing leases except, we are now grossing up our income statement for certain operating expenses, such as property taxes and insurance, that the tenants of our facilities are required to reimburse us for pursuant to our “triple-net” leases. See Note 10 for additional detail. Recent Accounting Developments: Measurement of Credit Losses on Financial Instruments In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). This standard requires a new forward-looking “expected loss” model to be used for our financing receivables, including direct financing leases and loan receivables, which the FASB believes will result in more timely recognition of such losses. ASU 2016-13 is effective for us beginning January 1, 2020. We are currently evaluating the impact that the standard will have on our consolidated financial statements. Reclassifications and Revisions Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform to the current period presentation. |
Real Estate and Lending Activit
Real Estate and Lending Activities | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [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, 2019 2018 Assets Acquired Land $ 169 $ — Building 5,327 — Intangible lease assets — subject to amortization 996 — Total assets acquired $ 6,492 $ — On February 8, 2019, we acquired an inpatient rehabilitation hospital in Germany for €5.7 million (including real estate transfer taxes). This acquisition was the final property to close as part of a four-hospital portfolio that we agreed to purchase for an aggregate amount of €23 million (including real estate transfer taxes). The property is leased to affiliates of Median Kliniken S.à.r.l. (“MEDIAN”), pursuant to a new 27-year master lease with annual escalators at the greater of 1% or 70% of the change in German consumer price index (“CPI”). Development Activities During the 2018 first quarter, we completed construction on a $25.5 million inpatient rehabilitation facility located in Flagstaff, Arizona. This facility opened on March 1, 2018 and is being leased to Ernest Health, Inc. (“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, 2019 Estimated Rent Commencement Date Circle Health (Birmingham, England) $ 44,241 $ 34,705 3Q 2019 Circle Health Rehabilitation (Birmingham, England) 21,979 11,677 3Q 2019 Surgery Partners (Idaho Falls, Idaho) 113,468 55,857 1Q 2020 $ 179,688 $ 102,239 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 had 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. Leasing Operations (Lessor) As noted earlier, we acquire and develop healthcare facilities and lease the facilities to healthcare operating companies under long-term net leases (typical initial fixed terms ranging from 10 to 15 years) and most include renewal options at the election of our tenants, generally in five year increments. More than 95% of our leases provide annual rent escalations based on increases in the consumer price index (or similar index outside the U.S.) and/or fixed minimum annual escalations ranging from 0.5% to 3.0%. Many of our domestic leases contain purchase options with pricing set at various terms but in no case less than our total investment. For five properties with a carrying value of $210 million, our leases require a residual value guarantee from the tenant. Our leases typically require the tenant to handle and bear most of the costs associated with our properties including repair/maintenance, property taxes, and insurance. We routinely inspect our properties to ensure the residual value of each of our assets is being maintained. Except for leases noted below as direct finance leases (“DFLs”), all of our leases are classified as operating leases. The following table summarizes future minimum lease payments to be received, excluding operating expense reimbursements, from tenants under noncancelable leases as of March 31, 2019 (in thousands): Total Under Operating Leases Total Under DFLs Total 2019 (nine months only) $ 329,487 $ 48,491 $ 377,978 2020 438,596 66,008 504,604 2021 447,232 67,388 514,620 2022 452,173 68,796 520,969 2023 459,222 70,232 529,454 Thereafter 9,636,734 1,550,857 11,187,591 $ 11,763,444 $ 1,871,772 $ 13,635,216 Direct Financing Leases At March 31, 2019, leases on 14 Ernest facilities, ten Prime Healthcare Services, Inc. (“Prime”) facilities, and two Alecto Healthcare Services LLC (“Alecto”) facilities are accounted for as DFLs. The components of our net investment in DFLs consisted of the following (in thousands): As of March 31, 2019 As of December 31, 2018 Minimum lease payments receivable $ 2,078,099 $ 2,091,504 Estimated residual values 421,893 424,719 Less: Unearned income (1,815,445 ) (1,832,170 ) Net investment in direct financing leases $ 684,547 $ 684,053 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 had 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 Transition Properties As noted in previous filings, effective October 2, 2017, we had 16 properties transitioning away from Adeptus Health, Inc. (“Adeptus”) in stages over a two year period as part of Adeptus’ confirmed plan of reorganization under Chapter 11 of the Bankruptcy Code. At March 31, 2019, nine of these properties have been re-leased at rates consistent with that of the previous Adeptus lease, and one property in the Dallas market was sold in April 2019. Of the six remaining facilities (representing less than 0.6% of our total assets at March 31, 2019), five remain vacant and the final property will be transitioned away from Adeptus on October 1, 2019. At March 31, 2019, Adeptus 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, 2019, that the sale or re-leasing of the remaining six transition facilities will not result in any material loss or additional 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. At March 31, 2019, all outstanding receivables due from the former tenant of Florence and Gilbert were completely reserved. On December 14, 2018, the Florence facility was re-leased to Steward pursuant to our original master lease with them with a term to begin in the second quarter of 2019. At March 31, 2019, our Gilbert facility is vacant. Although no assurances can be made that we will not have any impairment charges in the future, we believe our investment in the Gilbert facility (less than 0.2% of total assets at March 31, 2019), is fully recoverable. Alecto Facilities At March 31, 2019, we own four acute care facilities that are leased to Alecto and have a mortgage loan on a fifth property. With the decline in the operating results of the facility tenant, we recorded a charge to reserve against the straight-line rent and other receivables outstanding during the three months ended March 31, 2019. At March 31, 2019, our total overall investment in these properties is approximately 1% of our total assets. Loans The following is a summary of our loans (in thousands): As of March 31, 2019 As of December 31, 2018 Mortgage loans $ 1,214,780 $ 1,213,322 Other loans 365,402 373,198 Total $ 1,580,182 $ 1,586,520 Other loans typically consist of loans to our tenants for acquisitions and working capital purposes, and include our shareholder loan made to the joint venture with Primotop Holdings S.à.r.l. (“Primotop”) in the amount of €290 million. Concentrations of Credit Risk We monitor concentration risk in several ways due to the nature of our real estate assets that are vital to the communities in which they are located and given our history of being able to replace inefficient operators of our facilities if needed, with more effective operators: 1) Facility concentration – At March 31, 2019, we had no investment in any single property greater than 4% of our total assets, which is consistent with December 31, 2018. 2) Operator concentration – For the three months ended March 31, 2019, revenue from Steward and Prime of $86.6 million and $32.0 million, respectively, exceeded 10% of our total revenues. In comparison, Steward ($73.2 million), Prime ($31.8 million) and MEDIAN ($29.1 million), respectively, exceeded 10% of our total revenues for the first three months of 2018. 3) Geographic concentration – At March 31, 2019, investments in the U.S. and Europe represented approximately 80% and 20%, respectively, of our total assets, which is consistent with December 31, 2018. 4) Facility type concentration – For the three months ended March 31, 2019, approximately 86% of our revenues are from our general acute care facilities, while rehabilitation and long-term acute care facilities make up 10% and 4%, respectively. These percentages are similar to those for the first three months of 2018. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt The following is a summary of debt (dollar amounts in thousands): As of March 31, 2019 As of December 31, 2018 Revolving credit facility(A) $ 37,802 $ 28,059 Term loan 200,000 200,000 4.000% Senior Unsecured Notes due 2022(B) 560,900 573,350 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) 560,900 573,350 5.250% Senior Unsecured Notes due 2026 500,000 500,000 5.000% Senior Unsecured Notes due 2027 1,400,000 1,400,000 $ 4,059,602 $ 4,074,759 Debt issue costs, net (36,034 ) (37,370 ) $ 4,023,568 $ 4,037,389 (A) Includes £29 million and £22 million of GBP-denominated borrowings that reflect the exchange rate at March 31, 2019 and December 31, 2018, respectively. (B) These notes are Euro-denominated and reflect the exchange rate at March 31, 2019 and December 31, 2018, respectively. As of March 31, 2019, principal payments due on our debt (which exclude the effects of any discounts, premiums, or debt issue costs recorded) are as follows (in thousands): 2019 $ — 2020 — 2021 37,802 2022 760,900 2023 — Thereafter 3,260,900 Total $ 4,059,602 Covenants Our debt facilities impose certain restrictions on us, including restrictions on our ability to: incur debts; create or incur liens; provide guarantees in respect of obligations of any other entity; make redemptions and repurchases of our capital stock; prepay, redeem or repurchase debt; engage in mergers or consolidations; enter into affiliated transactions; dispose of real estate or other assets; and change our business. In addition, the credit agreements governing our revolving credit and term loan agreement (“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, 2019, 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. The 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, 2019, we were in compliance with all such financial and operating covenants. |
Common Stock_Partner's Capital
Common Stock/Partner's Capital | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Common Stock/Partner's Capital | 5. Common Stock/Partners’ Capital Medical Properties Trust, Inc. In the 2019 first quarter, we sold 20.1 million shares of common stock under our at-the-market equity offering program, resulting in net proceeds of approximately $354 million. We sold an additional 2.5 million shares of common stock under our at-the-market equity offering program subsequent to March 31, 2019, resulting in net proceeds of approximately $45 million. MPT Operating Partnership, L.P. At March 31, 2019, the Company has a 99.9% ownership interest in the Operating Partnership, with the remainder owned by two other partners, who are employees. During the three months ended March 31, 2019, the Operating Partnership issued approximately 20.1 million units in direct response to the common stock at-the-market offerings by Medical Properties Trust, Inc. during the same period. |
Stock Awards
Stock Awards | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Awards | 6. Stock Awards We adopted the 2013 Equity Incentive Plan (the “Equity Incentive Plan”) during the second quarter of 2013, which authorizes the issuance of common stock options, restricted stock, restricted stock units, deferred stock units, stock appreciation rights, performance units and awards of interests in our Operating Partnership. The Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors. We have reserved 8,196,770 shares of common stock for awards under the Equity Incentive Plan. No shares remain available for future stock awards as of March 31, 2019. Share-based compensation expense totaled $6.7 million and $1.9 million for the three months ended March 31, 2019 and 2018, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 7. Fair Value of Financial Instruments We have various assets and liabilities that are considered financial instruments. We estimate that the carrying value of cash and cash equivalents and accounts payable and accrued expenses approximate their fair values. 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 other 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, 2019 December 31, 2018 Asset (Liability) Book Value Fair Value Book Value Fair Value Interest and rent receivables $ 24,788 $ 23,925 $ 25,855 $ 24,942 Loans(1) 1,465,182 1,552,687 1,471,520 1,490,758 Debt, net (4,023,568 ) (4,170,310 ) (4,037,389 ) (3,947,795 ) (1) Excludes mortgage loans related to Ernest since they are recorded at fair value and discussed below. Items Measured at Fair Value on a Recurring Basis Our Ernest mortgage loans are measured at fair value on a recurring basis as we elected to account for these investments using the fair value option method in 2012 when we acquired an equity interest in and made an acquisition loan to Ernest. Such equity interest was sold and the acquisition loan was paid off in October 2018. We elected to account for these investments at fair value due to the size of the investments and because we believe this method was more reflective of current values. We have not made a similar election for other investments existing at March 31, 2019. At March 31, 2019, the amounts recorded under the fair value option method were as follows (in thousands): Asset Type Fair Value Original Cost Asset Type Classification Mortgage loans $ 115,000 $ 115,000 Mortgage loans Our mortgage 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. During the first quarter of 2018, we recognized an unrealized loss on our investment in Ernest. There was no gain or loss recorded during the first three months of 2019. |
Earnings Per Share_Unit
Earnings Per Share/Unit | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share/Unit | 8. Earnings Per Share/Unit Medical Properties Trust, Inc. Our earnings per share were calculated based on the following (amounts in thousands): For the Three Months Ended March 31, 2019 2018 Numerator: Net income $ 76,291 $ 91,043 Non-controlling interests’ share in net income (469 ) (442 ) Participating securities’ share in earnings (476 ) (195 ) Net income, less participating securities’ share in earnings $ 75,346 $ 90,406 Denominator: Basic weighted-average common shares 380,551 364,882 Dilutive potential common shares 1,124 461 Dilutive weighted-average common shares 381,675 365,343 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, 2019 2018 Numerator: Net income $ 76,291 $ 91,043 Non-controlling interests’ share in net income (469 ) (442 ) Participating securities’ share in earnings (476 ) (195 ) Net income, less participating securities’ share in earnings $ 75,346 $ 90,406 Denominator: Basic weighted-average units 380,551 364,882 Dilutive potential units 1,124 461 Diluted weighted-average units 381,675 365,343 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Commitments On January 31, 2019, we entered into definitive agreements to acquire a portfolio of eleven Australian hospitals currently operated by Healthscope Ltd. (“Healthscope”) for an aggregate purchase price of approximately $859 million, of which approximately $36.4 million was paid into escrow on February 4, 2019. Upon closing, these facilities will be leased to Healthscope pursuant to master lease agreements that have an average initial term of 20 years with annual fixed escalations and multiple extension options. In a related transaction, Brookfield Business Partners L.P. together with its institutional partners (“Brookfield”) has agreed to acquire up to 100% of Healthscope’s outstanding shares. Closing of our acquisition, which is expected to be completed in the second quarter of 2019, is subject to Healthscope shareholder approval, customary real estate and regulatory approvals, the successful completion of the Brookfield transactions, and other closing conditions. In April 2019, we entered into an Australian term loan commitment in the amount of $1.2 billion Australian dollars for which closing and funding is contingent on the successful completion of the Healthscope transaction. 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. |
Leases (Lessee)
Leases (Lessee) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases (Lessee) | 10. Leases (Lessee) We have leased land on which certain of our facilities reside, along with corporate office and equipment. Our leases have remaining lease terms of 5.3 years to 42.5 years, some of which may include options to extend the leases up to, or just beyond, the depreciable life of the properties that occupy the leased land. Renewal options that we are reasonably certain to exercise are recognized in our right-of-use assets and lease liabilities. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at lease commencement date in determining the present value of future payments. Properties subject to ground leases are subleased to our tenants, except for three Adeptus transition properties. The following is a summary of our lease expense (in thousands): Classification Three Months Ended March 31, 2019 Operating lease cost (1) (2) $ 2,096 Finance lease cost: Amortization of right-of-use assets Real estate depreciation and amortization 13 Interest on lease liabilities Interest expense 21 Sublease income Interest and other income (900 ) Total lease cost $ 1,230 (1) Includes short-term leases. (2) $1.6 million included in Property-related, with the remainder reflected in General and administrative expenses. Fixed minimum payments due over the remaining lease term under non-cancelable leases of more than one year and amounts to be received in the future from non-cancelable subleases over their remaining lease term at March 31, 2019 are as follows (amounts in thousands): Operating leases Finance leases Amounts to be received from subleases Net payments 2019 (1) $ 4,598 $ 93 $ (2,542 ) $ 2,149 2020 6,437 125 (3,456 ) 3,106 2021 6,606 126 (3,561 ) 3,171 2022 6,750 128 (3,715 ) 3,163 2023 6,815 129 (3,719 ) 3,225 Thereafter 196,788 5,045 (95,320 ) 106,513 (2) Total undiscounted minimum lease payments $ 227,994 $ 5,646 $ (112,313 ) $ 121,327 Less: interest (146,478 ) (3,717 ) Present value of lease liabilities $ 81,516 $ 1,929 (1) Represents remaining nine months of 2019. (2) Reflects certain ground leases, in which we are the lessee, that have longer initial fixed terms than our existing sublease to our tenants. However, we would expect to either renew the related sublease, enter into a lease with a new tenant or early terminate the ground lease to reduce or avoid any significant impact from such ground leases. Supplemental balance sheet information is as follows (in thousands, except lease terms and discount rate): Classification March 31, 2019 Right of use assets: Operating leases - real estate Land, buildings and improvements, intangible lease assets, and other $ 64,995 Finance leases - real estate Land, buildings and improvements, intangible lease assets, and other 1,939 Real estate right of use assets, net 66,934 Operating leases - corporate Other assets 11,419 Total right of use assets, net $ 78,353 Lease liabilities: Operating leases Obligations to tenants and other lease liabilities $ 81,516 Financing leases Obligations to tenants and other lease liabilities 1,929 Total lease liabilities $ 83,445 Weighted average remaining lease term: Operating leases 32.2 Finance leases 37.7 Weighted average discount rate: Operating leases 6.3 % Finance leases 6.6 % The following is supplemental cash flow information (in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,459 Operating cash flows from finance leases 10 Financing cash flows from finance leases 21 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,042 Finance leases — |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events On April 3, 2019, we closed on the acquisition of one acute care hospital in Poole, England for a purchase price of approximately £34.5 million. Upon closing, this facility was leased to BMI Healthcare, pursuant to an in-place lease with 14 years remaining on its term and fixed 2.5% annual escalators. On April 11, 2019, we re-leased our Twelve Oaks facility to a new tenant, Advanced Diagnostics Health System, LLC, pursuant to a new 10-year lease, subject to four additional five-year extension options. On April 12, 2019, we closed on the acquisition of one acute care hospital in Big Spring, Texas for a purchase price of $26 million. Upon closing, this facility was leased to Steward pursuant to the existing master lease agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The condensed consolidated balance sheet at December 31, 2018 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, 2018. There have been no material changes to these significant accounting policies other than the following: On January 1, 2019, we adopted Accounting Standards Update (“ASU”) 2016-02, “Leases”, (“ASU 2016-02”). ASU 2016-02 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). We adopted this standard using the modified retrospective approach and have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, permits the following: no reassessment of whether existing contracts are or contain a lease; no reassessment of lease classification for existing leases; and no reassessment of initial direct costs for existing leases. Additionally, we made certain elections permitted in accordance with ASU 2018-11, “Leases (Topic 842): – Targeted Improvements.” which (1) permits entities to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in its financial statements and (2) permits lessors to account for lease and non-lease components as a single lease component in a contract if certain criteria are met. The 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 (for finance leases) or on a straight-line basis (for operating leases) 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 remain off balance sheet with lease expense recognized on a straight-line basis over the lease term, similar to previous guidance for operating leases. The standard requires lessors to account for leases using an approach that is substantially equivalent to previous guidance for sales-type leases, direct financing leases and operating leases. For our leases in which we are the lessee, including ground leases on which certain of our facilities reside, along with corporate office and equipment leases, we recorded a right-of-use asset and offsetting lease liability of approximately $84 million upon adoption of this standard – resulting in no material cumulative effect adjustment. From a lessor perspective, we did not change the classification or accounting of our existing leases except, we are now grossing up our income statement for certain operating expenses, such as property taxes and insurance, that the tenants of our facilities are required to reimburse us for pursuant to our “triple-net” leases. See Note 10 for additional detail. |
Recent Accounting Developments | Recent Accounting Developments: Measurement of Credit Losses on Financial Instruments In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). This standard requires a new forward-looking “expected loss” model to be used for our financing receivables, including direct financing leases and loan receivables, which the FASB believes will result in more timely recognition of such losses. ASU 2016-13 is effective for us beginning January 1, 2020. We are currently evaluating the impact that the standard will have on our consolidated financial statements. |
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. |
Real Estate and Lending Activ_2
Real Estate and Lending Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Assets Acquired | We acquired the following assets (in thousands): Three Months Ended March 31, 2019 2018 Assets Acquired Land $ 169 $ — Building 5,327 — Intangible lease assets — subject to amortization 996 — Total assets acquired $ 6,492 $ — |
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, 2019 Estimated Rent Commencement Date Circle Health (Birmingham, England) $ 44,241 $ 34,705 3Q 2019 Circle Health Rehabilitation (Birmingham, England) 21,979 11,677 3Q 2019 Surgery Partners (Idaho Falls, Idaho) 113,468 55,857 1Q 2020 $ 179,688 $ 102,239 |
Summary of Future Minimum Lease Payments to be Received | The following table summarizes future minimum lease payments to be received, excluding operating expense reimbursements, from tenants under noncancelable leases as of March 31, 2019 (in thousands): Total Under Operating Leases Total Under DFLs Total 2019 (nine months only) $ 329,487 $ 48,491 $ 377,978 2020 438,596 66,008 504,604 2021 447,232 67,388 514,620 2022 452,173 68,796 520,969 2023 459,222 70,232 529,454 Thereafter 9,636,734 1,550,857 11,187,591 $ 11,763,444 $ 1,871,772 $ 13,635,216 |
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, 2019 As of December 31, 2018 Minimum lease payments receivable $ 2,078,099 $ 2,091,504 Estimated residual values 421,893 424,719 Less: Unearned income (1,815,445 ) (1,832,170 ) Net investment in direct financing leases $ 684,547 $ 684,053 |
Summary of Loans | The following is a summary of our loans (in thousands): As of March 31, 2019 As of December 31, 2018 Mortgage loans $ 1,214,780 $ 1,213,322 Other loans 365,402 373,198 Total $ 1,580,182 $ 1,586,520 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following is a summary of debt (dollar amounts in thousands): As of March 31, 2019 As of December 31, 2018 Revolving credit facility(A) $ 37,802 $ 28,059 Term loan 200,000 200,000 4.000% Senior Unsecured Notes due 2022(B) 560,900 573,350 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) 560,900 573,350 5.250% Senior Unsecured Notes due 2026 500,000 500,000 5.000% Senior Unsecured Notes due 2027 1,400,000 1,400,000 $ 4,059,602 $ 4,074,759 Debt issue costs, net (36,034 ) (37,370 ) $ 4,023,568 $ 4,037,389 (A) Includes £29 million and £22 million of GBP-denominated borrowings that reflect the exchange rate at March 31, 2019 and December 31, 2018, respectively. (B) These notes are Euro-denominated and reflect the exchange rate at March 31, 2019 and December 31, 2018, respectively. |
Principal Payments Due on Debt | As of March 31, 2019, principal payments due on our debt (which exclude the effects of any discounts, premiums, or debt issue costs recorded) are as follows (in thousands): 2019 $ — 2020 — 2021 37,802 2022 760,900 2023 — Thereafter 3,260,900 Total $ 4,059,602 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 December 31, 2018 Asset (Liability) Book Value Fair Value Book Value Fair Value Interest and rent receivables $ 24,788 $ 23,925 $ 25,855 $ 24,942 Loans(1) 1,465,182 1,552,687 1,471,520 1,490,758 Debt, net (4,023,568 ) (4,170,310 ) (4,037,389 ) (3,947,795 ) (1) Excludes mortgage 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, 2019, the amounts recorded under the fair value option method were as follows (in thousands): Asset Type Fair Value Original Cost Asset Type Classification Mortgage loans $ 115,000 $ 115,000 Mortgage loans |
Earnings Per Share_Unit (Tables
Earnings Per Share/Unit (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Numerator: Net income $ 76,291 $ 91,043 Non-controlling interests’ share in net income (469 ) (442 ) Participating securities’ share in earnings (476 ) (195 ) Net income, less participating securities’ share in earnings $ 75,346 $ 90,406 Denominator: Basic weighted-average common shares 380,551 364,882 Dilutive potential common shares 1,124 461 Dilutive weighted-average common shares 381,675 365,343 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, 2019 2018 Numerator: Net income $ 76,291 $ 91,043 Non-controlling interests’ share in net income (469 ) (442 ) Participating securities’ share in earnings (476 ) (195 ) Net income, less participating securities’ share in earnings $ 75,346 $ 90,406 Denominator: Basic weighted-average units 380,551 364,882 Dilutive potential units 1,124 461 Diluted weighted-average units 381,675 365,343 |
Leases (Lessee) (Tables)
Leases (Lessee) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Lease Expense | The following is a summary of our lease expense (in thousands): Classification Three Months Ended March 31, 2019 Operating lease cost (1) (2) $ 2,096 Finance lease cost: Amortization of right-of-use assets Real estate depreciation and amortization 13 Interest on lease liabilities Interest expense 21 Sublease income Interest and other income (900 ) Total lease cost $ 1,230 (1) Includes short-term leases. (2) $1.6 million included in Property-related, with the remainder reflected in General and administrative expenses. |
Schedule Of Future Minimum Rental Payments For Leases Sublease Receivable And Net Payments Table Text Block | Fixed minimum payments due over the remaining lease term under non-cancelable leases of more than one year and amounts to be received in the future from non-cancelable subleases over their remaining lease term at March 31, 2019 are as follows (amounts in thousands): Operating leases Finance leases Amounts to be received from subleases Net payments 2019 (1) $ 4,598 $ 93 $ (2,542 ) $ 2,149 2020 6,437 125 (3,456 ) 3,106 2021 6,606 126 (3,561 ) 3,171 2022 6,750 128 (3,715 ) 3,163 2023 6,815 129 (3,719 ) 3,225 Thereafter 196,788 5,045 (95,320 ) 106,513 (2) Total undiscounted minimum lease payments $ 227,994 $ 5,646 $ (112,313 ) $ 121,327 Less: interest (146,478 ) (3,717 ) Present value of lease liabilities $ 81,516 $ 1,929 (1) Represents remaining nine months of 2019. (2) Reflects certain ground leases, in which we are the lessee, that have longer initial fixed terms than our existing sublease to our tenants. However, we would expect to either renew the related sublease, enter into a lease with a new tenant or early terminate the ground lease to reduce or avoid any significant impact from such ground leases. |
Summary of Supplemental Balance Sheet Information | Supplemental balance sheet information is as follows (in thousands, except lease terms and discount rate): Classification March 31, 2019 Right of use assets: Operating leases - real estate Land, buildings and improvements, intangible lease assets, and other $ 64,995 Finance leases - real estate Land, buildings and improvements, intangible lease assets, and other 1,939 Real estate right of use assets, net 66,934 Operating leases - corporate Other assets 11,419 Total right of use assets, net $ 78,353 Lease liabilities: Operating leases Obligations to tenants and other lease liabilities $ 81,516 Financing leases Obligations to tenants and other lease liabilities 1,929 Total lease liabilities $ 83,445 Weighted average remaining lease term: Operating leases 32.2 Finance leases 37.7 Weighted average discount rate: Operating leases 6.3 % Finance leases 6.6 % |
Summary of Supplemental Cash Flow Information | The following is supplemental cash flow information (in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,459 Operating cash flows from finance leases 10 Financing cash flows from finance leases 21 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,042 Finance leases — |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Accounting Policies [Abstract] | ||
Right of use asset | $ 84,000 | |
Operating lease liabilities | $ 81,516 | $ 84,000 |
Real Estate and Lending Activ_3
Real Estate and Lending Activities - Assets Acquired (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Business Acquisition [Line Items] | |
Total assets acquired | $ 6,492 |
Land [Member] | |
Business Acquisition [Line Items] | |
Total assets acquired | 169 |
Building [Member] | |
Business Acquisition [Line Items] | |
Total assets acquired | 5,327 |
Intangible Lease Assets - Subject to Amortization [Member] | |
Business Acquisition [Line Items] | |
Total assets acquired | $ 996 |
Real Estate and Lending Activ_4
Real Estate and Lending Activities - Acquisitions - Additional Information (Detail) - Rehabilitation Hospital with Covenant Health System [Member] - Germany [Member] € in Millions | Feb. 08, 2019EUR (€) | Jun. 30, 2018EUR (€)Hospital |
Business Acquisition [Line Items] | ||
Purchase price of acquisition | € | € 5.7 | € 23 |
Number of facilities acquired | Hospital | 4 | |
MEDIAN [Member] | ||
Business Acquisition [Line Items] | ||
Term of lease | 27 years | |
Lease rent increase percentage | 70.00% | |
Lease rate | 1.00% |
Real Estate and Lending Activ_5
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 | $ 25.5 |
Real Estate and Lending Activ_6
Real Estate and Lending Activities - Summary of Status Update on Current Development Projects (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Commitment | $ 179,688 |
Costs Incurred as of March 31, 2019 | 102,239 |
Circle Health [Member] | Birmingham, England [Member] | |
Business Acquisition [Line Items] | |
Commitment | 44,241 |
Costs Incurred as of March 31, 2019 | $ 34,705 |
Estimated Rent Commencement Date | 3Q 2019 |
Circle Health Rehabilitation [Member] | Birmingham, England [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 21,979 |
Costs Incurred as of March 31, 2019 | $ 11,677 |
Estimated Rent Commencement Date | 3Q 2019 |
Surgery Partners [Member] | Idaho Falls, ID [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 113,468 |
Costs Incurred as of March 31, 2019 | $ 55,857 |
Estimated Rent Commencement Date | 1Q 2020 |
Real Estate and Lending Activ_7
Real Estate and Lending Activities - Disposals - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 01, 2018 | Mar. 31, 2018 |
Debt Instrument [Line Items] | ||
Net proceeds from sale of real estate | $ 148,809 | |
Houston, Texas [Member] | Steward Health Care System LLC [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 Activ_8
Real Estate and Lending Activities - Leasing Operations (Lessor) - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)Property | |
Lessor Lease Description [Line Items] | |
Lease renewal term | 5 years |
Annual rent escalations | 95.00% |
Number of properties | Property | 5 |
Carrying value of lease requiring residual value guarantee | $ | $ 210 |
Minimum [Member] | |
Lessor Lease Description [Line Items] | |
Term of lease | 10 years |
Fixed minimum annual escalations | 0.50% |
Maximum [Member] | |
Lessor Lease Description [Line Items] | |
Term of lease | 15 years |
Fixed minimum annual escalations | 3.00% |
Real Estate and Lending Activ_9
Real Estate and Lending Activities - Summary of Future Minimum Lease Payments to be Received (Detail) $ in Thousands | Mar. 31, 2019USD ($) | |
Lessor Lease Description [Line Items] | ||
2019 (nine months only) | $ 2,542 | [1] |
2020 | 3,456 | |
2021 | 3,561 | |
2022 | 3,715 | |
2023 | 3,719 | |
Thereafter | 95,320 | |
Future minimum lease payments to be received | 112,313 | |
Minimum [Member] | ||
Lessor Lease Description [Line Items] | ||
2019 (nine months only) | 377,978 | |
2020 | 504,604 | |
2021 | 514,620 | |
2022 | 520,969 | |
2023 | 529,454 | |
Thereafter | 11,187,591 | |
Future minimum lease payments to be received | 13,635,216 | |
Operating Leases [Member] | Minimum [Member] | ||
Lessor Lease Description [Line Items] | ||
2019 (nine months only) | 329,487 | |
2020 | 438,596 | |
2021 | 447,232 | |
2022 | 452,173 | |
2023 | 459,222 | |
Thereafter | 9,636,734 | |
Future minimum lease payments to be received | 11,763,444 | |
Direct Financing Leases [Member] | Minimum [Member] | ||
Lessor Lease Description [Line Items] | ||
2019 (nine months only) | 48,491 | |
2020 | 66,008 | |
2021 | 67,388 | |
2022 | 68,796 | |
2023 | 70,232 | |
Thereafter | 1,550,857 | |
Future minimum lease payments to be received | $ 1,871,772 | |
[1] | Represents remaining nine months of 2019. |
Real Estate and Lending Acti_10
Real Estate and Lending Activities - Direct Financing Leases - Additional Information (Detail) $ in Millions | Mar. 15, 2018USD ($) | Mar. 31, 2019Lease |
Ernest [Member] | ||
Direct Financing Lease Income [Line Items] | ||
Number of direct financing leases | 14 | |
Prime Facilities [Member] | ||
Direct Financing Lease Income [Line Items] | ||
Number of direct financing leases | 10 | |
Alecto Healthcare Services [Member] | ||
Direct Financing Lease Income [Line Items] | ||
Number of direct financing leases | 2 | |
Vibra Healthcare, LLC [Member] | Acute Care Hospital [Member] | ||
Direct Financing Lease Income [Line Items] | ||
Term of lease | 15 years | |
Existence of option to extend | true | |
Number of lease extension options | with three extension options of five years each. | |
Term of lease extension, years | 5 years | |
Write off of unbilled direct finance lease rent | $ | $ 1.5 |
Real Estate and Lending Acti_11
Real Estate and Lending Activities - Components of Net Investment in Direct Financing Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Direct Financing Lease Net Investment In Leases [Abstract] | ||
Minimum lease payments receivable | $ 2,078,099 | $ 2,091,504 |
Estimated residual values | 421,893 | 424,719 |
Less: Unearned income | (1,815,445) | (1,832,170) |
Net investment in direct financing leases | $ 684,547 | $ 684,053 |
Real Estate and Lending Acti_12
Real Estate and Lending Activities - Adeptus Health Transition Properties - Additional Information (Detail) - Adeptus Health Transition Properties [Member] | Oct. 01, 2019Property | Apr. 30, 2019Property | Mar. 31, 2019PropertyFacility |
Business Acquisition [Line Items] | |||
Number of facilities transitioned | 16 | ||
Number of re-leased properties | 9 | ||
Number of transitioned facilities not re-leased | Facility | 6 | ||
Percentage of investment in remaining transition facilities on total assets | 0.60% | ||
Scenario, Forecast [Member] | |||
Business Acquisition [Line Items] | |||
Number of remaining properties to be transitioned | 5 | ||
Subsequent Event [Member] | |||
Business Acquisition [Line Items] | |||
Number of properties sold | 1 |
Real Estate and Lending Acti_13
Real Estate and Lending Activities - Gilbert and Florence Facilities - Additional Information (Detail) - Gilbert and Florence Facilities [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Gain offset by non-cash charges | $ 1.1 | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | ||
Business Acquisition [Line Items] | ||
Percentage of Total Gross Assets | 0.20% |
Real Estate and Lending Acti_14
Real Estate and Lending Activities - Alecto Facilities - Additional Information (Detail) - Alecto Healthcare Services [Member] | 3 Months Ended |
Mar. 31, 2019Property | |
Business Acquisition [Line Items] | |
Number of leased properties | 4 |
Total Gross Assets [Member] | Customer Concentration Risk [Member] | |
Business Acquisition [Line Items] | |
Percentage of Total Gross Assets | 1.00% |
Real Estate and Lending Acti_15
Real Estate and Lending Activities - Summary of Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loans [Line Items] | ||
Loans, Balance | $ 1,580,182 | $ 1,586,520 |
Mortgage Loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | 1,214,780 | 1,213,322 |
Other Loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | $ 365,402 | $ 373,198 |
Real Estate and Lending Acti_16
Real Estate and Lending Activities - Loans - Additional Information (Detail) € in Millions | Mar. 31, 2019EUR (€) |
Primotop Holdings S.a.r.l. [Member] | |
Loans [Line Items] | |
Shareholder loan to joint venture | € 290 |
Real Estate and Lending Acti_17
Real Estate and Lending Activities - Concentration of Credit Risks and Related Party Transactions - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)Investment | Mar. 31, 2018USD ($) | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Revenue from affiliates of total revenue | $ 180,454 | $ 205,046 | |
Total Gross Assets [Member] | Geographic Concentration [Member] | U.S. [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of revenue from affiliates of total revenue | 80.00% | 80.00% | |
Total Gross Assets [Member] | Geographic Concentration [Member] | Europe [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of revenue from affiliates of total revenue | 20.00% | 20.00% | |
Revenue [Member] | Customer Concentration Risk [Member] | General Acute Care Hospital and Healthcare System [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of revenue from affiliates of total revenue | 86.00% | 86.00% | |
Revenue [Member] | Customer Concentration Risk [Member] | Rehabilitation Hospital with Covenant Health System [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of revenue from affiliates of total revenue | 10.00% | 10.00% | |
Revenue [Member] | Customer Concentration Risk [Member] | Long-term Acute Care Hospital [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of revenue from affiliates of total revenue | 4.00% | 4.00% | |
Revenue [Member] | Credit Concentration Risk [Member] | Steward [Member] | |||
Business Acquisition [Line Items] | |||
Revenue from affiliates of total revenue | $ 86,600 | $ 73,200 | |
Revenue [Member] | Credit Concentration Risk [Member] | Prime [Member] | |||
Business Acquisition [Line Items] | |||
Revenue from affiliates of total revenue | $ 32,000 | 31,800 | |
Revenue [Member] | Credit Concentration Risk [Member] | MEDIAN [Member] | |||
Business Acquisition [Line Items] | |||
Revenue from affiliates of total revenue | $ 29,100 | ||
Pro Forma [Member] | Total Gross Assets [Member] | Customer Concentration Risk [Member] | |||
Business Acquisition [Line Items] | |||
Number of investment in property | Investment | 0 | ||
Maximum percentage of entity's assets invested on single property | 4.00% |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Debt | $ 4,059,602 | ||
Debt issue costs, net | (36,034) | $ (37,370) | |
Debt, net | 4,023,568 | 4,037,389 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 37,802 | 28,059 |
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 200,000 | 200,000 | |
4.000% Senior Unsecured Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [2] | 560,900 | 573,350 |
5.500% Senior Unsecured Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 300,000 | 300,000 | |
6.375% Senior Unsecured Notes due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 500,000 | 500,000 | |
3.325% Senior Unsecured Notes Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [2] | 560,900 | 573,350 |
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 | |
Senior Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt | $ 4,059,602 | $ 4,074,759 | |
[1] | Includes £29 million and £22 million of GBP-denominated borrowings that reflect the exchange rate at March 31, 2019 and December 31, 2018, respectively. | ||
[2] | These notes are Euro-denominated and reflect the exchange rate at March 31, 2019 and December 31, 2018, respectively. |
Debt - Summary of Debt (Parenth
Debt - Summary of Debt (Parenthetical) (Detail) $ in Thousands, £ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | |
Debt Instrument [Line Items] | |||||
Debt | $ 4,059,602 | ||||
4.000% Senior Unsecured Notes due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, interest rate | 4.00% | 4.00% | 4.00% | 4.00% | |
Debt | [1] | $ 560,900 | $ 573,350 | ||
5.500% Senior Unsecured Notes Due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, interest rate | 5.50% | 5.50% | 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% | 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% | 3.325% | 3.325% | 3.325% | |
Debt | [1] | $ 560,900 | $ 573,350 | ||
5.250% Senior Unsecured Notes Due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, interest rate | 5.25% | 5.25% | 5.25% | 5.25% | |
Debt | $ 500,000 | $ 500,000 | |||
5.000% Senior Unsecured Notes Due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, interest rate | 5.00% | 5.00% | 5.00% | 5.00% | |
Debt | $ 1,400,000 | $ 1,400,000 | |||
GBP-denominated Borrowings [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt | £ | £ 29 | £ 22 | |||
[1] | These notes are Euro-denominated and reflect the exchange rate at March 31, 2019 and December 31, 2018, respectively. |
Debt - Principal Payments Due f
Debt - Principal Payments Due for Debt (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2019 | $ 0 |
2020 | 0 |
2021 | 37,802 |
2022 | 760,900 |
2023 | 0 |
Thereafter | 3,260,900 |
Total | $ 4,059,602 |
Debt - Covenants - Additional I
Debt - Covenants - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Percentage of dividends which could be paid from adjusted operating funds | 95.00% |
Percentage of dividends which could be paid from operation funds | 95.00% |
Maximum percentage of total unencumbered assets | 150.00% |
Common Stock_Partners' Capital
Common Stock/Partners' Capital - Additional Information (Detail) shares in Thousands, $ in Thousands | May 10, 2019USD ($)shares | Mar. 31, 2019USD ($)Employeeshares | Mar. 31, 2018USD ($) |
Class Of Stock [Line Items] | |||
Proceeds from sale of common shares / units, net of offering costs | $ | $ 354,030 | $ (94) | |
MPT Operating Partnership, L.P. [Member] | |||
Class Of Stock [Line Items] | |||
Number of units sold | 20,100 | ||
MPT Operating Partnership, L.P. [Member] | Medical Properties Trust, Inc. [Member] | |||
Class Of Stock [Line Items] | |||
Ownership interest in equity | 99.90% | ||
Employee [Member] | |||
Class Of Stock [Line Items] | |||
Number of partners shared remaining ownership percentage | Employee | 2 | ||
Subsequent Event [Member] | |||
Class Of Stock [Line Items] | |||
Proceeds from sale of common shares / units, net of offering costs | $ | $ 45,000 | ||
Common Units [Member] | |||
Class Of Stock [Line Items] | |||
Number of share sold | 20,147 | ||
Common Units [Member] | Subsequent Event [Member] | |||
Class Of Stock [Line Items] | |||
Number of share sold | 2,500 |
Stock Awards - Additional Infor
Stock Awards - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share / (Unit)-based compensation expense | $ 6,715 | $ 1,856 |
Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Reserved shares of common stock for awards under the Equity Incentive Plan | 8,196,770 | |
Common stock remaining for future stock awards transferred to the equity incentive plan | 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Fair Value Information of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Interest and rent receivables, Book value | $ 24,788 | $ 25,855 |
Loans, Book value | 1,465,182 | 1,471,520 |
Debt, net Book value | (4,023,568) | (4,037,389) |
Interest and rent receivables, Fair value | 23,925 | 24,942 |
Loans, Fair value | 1,552,687 | 1,490,758 |
Debt, net Fair value | $ (4,170,310) | $ (3,947,795) |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Equity Interest in Related Party and Related Loans Measured at Fair Value on Recurring Basis (Detail) - Fair Value Measurements, Recurring [Member] - Mortgage Loans [Member] $ in Thousands | Mar. 31, 2019USD ($) |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | $ 115,000 |
Original Cost | $ 115,000 |
Earnings Per Share_Unit - Calcu
Earnings Per Share/Unit - Calculation of Earnings Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 76,291 | $ 91,043 |
Net income attributable to non-controlling interests | (469) | (442) |
Participating securities’ share in earnings | (476) | (195) |
Net income, less participating securities’ share in earnings | $ 75,346 | $ 90,406 |
Basic weighted-average common shares | 380,551 | 364,882 |
Dilutive potential common shares | 1,124 | 461 |
Dilutive weighted-average common shares | 381,675 | 365,343 |
MPT Operating Partnership, L.P. [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 76,291 | $ 91,043 |
Net income attributable to non-controlling interests | (469) | (442) |
Participating securities’ share in earnings | (476) | (195) |
Net income, less participating securities’ share in earnings | $ 75,346 | $ 90,406 |
Basic weighted-average common shares | 380,551 | 364,882 |
Dilutive potential common shares | 1,124 | 461 |
Dilutive weighted-average common shares | 381,675 | 365,343 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Feb. 04, 2019USD ($) | Jan. 31, 2019USD ($)Hospital | Apr. 30, 2019AUD ($) | Mar. 31, 2019 |
Maximum [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Term of lease | 15 years | |||
Minimum [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Term of lease | 10 years | |||
Healthscope [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Number of facilities acquired | Hospital | 11 | |||
Purchase price of acquisition | $ 859 | |||
Purchase price of acquisition paid to escrow | $ 36.4 | |||
Term of lease | 20 years | |||
Healthscope [Member] | Maximum [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Ownership interests acquired | 100.00% | |||
Subsequent Event [Member] | Healthscope [Member] | Australian Term Loan [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Term loan commitment amount | $ 1,200,000,000 |
Leases (Lessee) - Additional In
Leases (Lessee) - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating and finance leases remaining lease term | 5 years 3 months 18 days |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating and finance leases remaining lease term | 42 years 6 months |
Leases (Lessee) - Summary of Le
Leases (Lessee) - Summary of Lease Expense (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Lessee Lease Description [Line Items] | ||
Operating lease cost | $ 2,096 | [1],[2] |
Finance lease cost: | ||
Total lease cost | 1,230 | |
Real Estate Depreciation and Amortization [Member] | ||
Finance lease cost: | ||
Amortization of right-of-use assets | 13 | |
Interest Expense [Member] | ||
Finance lease cost: | ||
Interest on lease liabilities | 21 | |
Interest and Other Income [Member] | ||
Finance lease cost: | ||
Sublease income | $ (900) | |
[1] | $1.6 million included in Property-related, with the remainder reflected in General and administrative expenses. | |
[2] | Includes short-term leases. |
Leases (Lessee) - Summary of _2
Leases (Lessee) - Summary of Lease Expense (Parenthetical) (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Lessee Lease Description [Line Items] | ||
Operating lease cost | $ 2,096 | [1],[2] |
Property-related [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease cost | $ 1,600 | |
[1] | $1.6 million included in Property-related, with the remainder reflected in General and administrative expenses. | |
[2] | Includes short-term leases. |
Leases (Lessee) - Fixed Minimum
Leases (Lessee) - Fixed Minimum Rental Payments Due under Leases with Non-Cancelable Terms (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | |||
Operating leases, 2019 | [1] | $ 4,598 | |
Operating leases, 2020 | 6,437 | ||
Operating leases, 2021 | 6,606 | ||
Operating leases, 2022 | 6,750 | ||
Operating leases, 2023 | 6,815 | ||
Operating leases, Thereafter | 196,788 | ||
Operating leases, Total undiscounted minimum lease payments | 227,994 | ||
Operating Leases, Less: interest | (146,478) | ||
Operating leases, Present value of lease liabilities | 81,516 | $ 84,000 | |
Finance leases, 2019 | [1] | 93 | |
Finance leases, 2020 | 125 | ||
Finance leases, 2021 | 126 | ||
Finance leases, 2022 | 128 | ||
Finance leases, 2023 | 129 | ||
Finance leases, Thereafter | 5,045 | ||
Finance leases, Total undiscounted minimum lease payments | 5,646 | ||
Finance leases, Less: interest | (3,717) | ||
Finance leases, Present value of lease liabilities | 1,929 | ||
Amounts to be received from subleases, 2019 | [1] | (2,542) | |
Amounts to be received from subleases, 2020 | (3,456) | ||
Amounts to be received from subleases, 2021 | (3,561) | ||
Amounts to be received from subleases, 2022 | (3,715) | ||
Amounts to be received from subleases, 2023 | (3,719) | ||
Amounts to be received from subleases, Thereafter | (95,320) | ||
Amounts to be received from subleases, Total undiscounted minimum lease payments | (112,313) | ||
Net payments, 2019 | [1] | 2,149 | |
Net payments, 2020 | 3,106 | ||
Net payments, 2021 | 3,171 | ||
Net payments, 2022 | 3,163 | ||
Net payments, 2023 | 3,225 | ||
Net payments, Thereafter | [2] | 106,513 | |
Net payments, Total undiscounted minimum lease payments | $ 121,327 | ||
[1] | Represents remaining nine months of 2019. | ||
[2] | Reflects certain ground leases, in which we are the lessee, that have longer initial fixed terms than our existing sublease to our tenants. However, we would expect to either renew the related sublease, enter into a lease with a new tenant or early terminate the ground lease to reduce or avoid any significant impact from such ground leases. |
Leases (Lessee) - Summary of Su
Leases (Lessee) - Summary of Supplemental Balance Sheet Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Right of use assets: | ||
Real estate right of use assets, net | $ 66,934 | |
Total right of use assets, net | 78,353 | |
Lease liabilities: | ||
Operating leases | $ 81,516 | $ 84,000 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | mpw:ObligationsToTenantsAndOtherLeaseLiabilities | |
Financing leases | $ 1,929 | |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | mpw:ObligationsToTenantsAndOtherLeaseLiabilities | |
Total lease liabilities | $ 83,445 | |
Weighted average remaining lease term: | ||
Operating leases | 32 years 2 months 12 days | |
Finance leases | 37 years 8 months 12 days | |
Weighted average discount rate: | ||
Operating leases | 6.30% | |
Finance leases | 6.60% | |
Real Estate [Member] | ||
Right of use assets: | ||
Operating leases | $ 64,995 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | mpw:LandBuildingsAndImprovementsIntangibleLeaseAssetsAndOther | |
Finance leases | $ 1,939 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | mpw:LandBuildingsAndImprovementsIntangibleLeaseAssetsAndOther | |
Corporate [Member] | ||
Right of use assets: | ||
Operating leases | $ 11,419 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets |
Leases (Lessee) - Summary of _3
Leases (Lessee) - Summary of Supplemental Cash Flow Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 1,459 |
Operating cash flows from finance leases | 10 |
Financing cash flows from finance leases | 21 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | $ 1,042 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] £ in Millions, $ in Millions | Apr. 12, 2019USD ($)Hospital | Apr. 11, 2019Facility | Apr. 03, 2019GBP (£)Hospital |
Acute Care Hospital [Member] | Poole, England [Member] | |||
Subsequent Event [Line Items] | |||
Number of facilities acquired | 1 | ||
Purchase price of acquisition | £ | £ 34.5 | ||
Acute Care Hospital [Member] | Poole, England [Member] | BMI Healthcare [Member] | |||
Subsequent Event [Line Items] | |||
Term of lease | 14 years | ||
Fixed annual escalators percentage | 2.50% | ||
Acute Care Hospital [Member] | Big Spring, Texas [Member] | Steward [Member] | |||
Subsequent Event [Line Items] | |||
Number of facilities acquired | 1 | ||
Purchase price of acquisition | $ | $ 26 | ||
Oaks Facility [Member] | Advanced Diagnostics [Member] | |||
Subsequent Event [Line Items] | |||
Number of re-leased properties | Facility | 12 | ||
Term of lease | 10 years | ||
Lease extension options, description | four additional five-year extension options | ||
Existence of option to extend | true | ||
Term of lease extension, years | 5 years |