MPW - Earnings call transcript Q2 2018 | Medical Properties Trust, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Medical Properties Trust Second Quarter 2018 Earnings Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference may be recorded. I would now like to turn the conference over to Mr. Managing and Treasurer Lambert, Director. Charles begin. Sir, you may

Charles Lambert

Jr., Medical Thank call conference results. the me K. Company; the Officer Hamner, Chief quarter and you. morning. Welcome With Chief Aldag, Edward are Vice Good and Properties today President to of financial and Executive Trust XXXX to Chairman, Executive discuss President Steven second our Officer. Financial

Securities was furnished on with the and distributed Form morning and this release Commission. press Our Exchange X-K

our on at a copy, it the you Relations www.medicalpropertiestrust.com If not Investor available in did receive is website section.

Additionally, we’re webcast of section. which call, in today’s access that hosting a live you can same

for reports Commission to is Securities to actual or any materially information call. this federal as During events duty unknown Act the such to to required to not such date within securities does filed of the as future by call, XXXX. statements of statements and risks, information. laws, and Private financial the expressed that provided The update being of could those statements other projections we cause will those the course discussion only statements. These certain the events today in and from forward-looking underlying you with other a forward-looking undertake and subject We forward-looking this results may known future factors Exchange the expressed be uncertainties Company’s factors this meaning our Reform differ that considered Company’s Litigation are may of and/or cause results the make the from of and except differ the that materially Company and refer Securities a

measures. GAAP in should has financial will and note call, Reg that directly financial our Trust comparable of the the G comparable measures release, requirements. measures, non-GAAP In accordance lieu press reconciled in measures addition to not addition, during all in considered Properties to financial conference GAAP describe most of Medical we Please be certain with in course the which non-GAAP

financial You Ed related over can I www.medicalpropertiestrust.com now at comparable will Aldag. measures and our Officer, most directly Chief call to also reconciliations. Executive the refer website to our for the turn

Edward K. Aldag

Thank call. second of all listening our earnings thank quarter Charles, you in today XXXX for you, and for

leading During the and that transactions of our others MPT Germany we and over $XXX more throughout have or a will of we will asset retains interest joint Europe’s asset venture XX post-acute transactions with executed, Primonial acquire continue and XX% a of recently net wealth MPT announced while the will €XX have portfolio of value these announced the billion managers value quarter, of to under second in manager. with completed hospitals one pending investment. management. role care XX% Primonial continue We strength and than formation Group, or over demonstrate above our a of million Through previously portfolio. generate the interest. a

credible investment. endorsement strategic us. vision the U.S. sale are at to €X.X closing. also be market of demonstrates sure transaction I’m culmination upon closing, our to MPT works of the firm, One spinout in expects Ernest XXXX partner of Partners, private management. $X €XXX proceeds to as The another Upon world portfolio, assets billion the recognize a with Our which than is announcement, JP Morgan Health billion In regarded the equity alone of MPT to recent portion throughout establishment of this our fully to approximately million under value a of to The choosing original the Equity interest beneficial highly will continues gain a the valued transaction MPT ever not this IRR of of $XXX which equity that expect our million, MPT this to unlevered we allow investment will OpCo from more our of as an represents on be very approximate the to recognized. million recognize with XX% investors an partnership of beyond expand $XX approximately

real benefit generate. of XX own from state post-acute these returns Additionally, hospitals they and strong MPT will the to continue the

relationship. to continue grow expect We to with this

We LTACHs also for Vibra gain our has a a recycling of internal total of of approximately in three real the $XX.X X% million, $XX.X again successful completed double-digit This resulting to total sale demonstrated of for investment the returns brings shareholders. once XX.X% our million of portfolio. in assets unlevered the rate mature LTACHs down of and our on sale transaction MPT Healthcare return. estate to

our new prominent brought of quarter Arizona the across health Dignity value again into the to the MPT to proves properties the Additionally, successful room emergency not-for-profit operator transaction following and Health. hospitals systems hospital a portfolio model freestanding this nation. the Adeptus transition of The

revenues week, strength last operators, robust Health merger combined of healthcare and of portfolio XX,XXX the billion, LifePoint licensed $X acquire will our of an announced enhance to stronger XX,XXX employees Just backed RCCH it hospitals. already that forma provider with one was to over of our beds XX and This acute Apollo operators. approximately continues even pro create hospital

the Utah future, continue agreement coverage continues of and was a we includes have indicated cash pleased track issue settlement which are ending Prime quarter, XXXX. times. the quarter the release our The XX equity Prime year to XXXX will XXXX this are with of same-store over with X.X terms our our are and the X.XX already XXXX we near to mainly Prime approximately to this fully and a a Prime’s continue final our the able Justice they press reporting. be record the process with Corporate claims. partner we signed execution removed has of settlement. which in was with perform that new Prime’s resolve largest trailing Department on a XX reporting, relationship of Prime grow this expect to Integrity to three of understanding and first Apollo, Agreement. quarter’s to in started Texas our properties net Healthcare continues they company. of track. EBITDARM assets to memorandum times. Given RCCH expect net in all by a months Last for for Steward, collections expects to trailing coverage from with in EBITDARM And markets revenues. still first process months well. With ending quarter acquisitions perform achieve a Steward’s they integration, the tenant, of Steward well.

shown transitioned quarter, three operators As across facility and long-term one results. trialing XX we noted sold previously, to The one have added reporting. acute rehabilitation acute on care moths hospitals, same-store long-term our care this and inpatient hospital, Vibra, was strong portfolio

remained coverage portfolio, months and times. portfolio. XXXX EBITDARM at X% X.X% from IRF IRF represents QX at X.X a XX% approximately XX of EBITDARM EBITDARM LTACH I times, also United improved approximately total our portfolio The represent, to quarter-over-quarter. XX% coverage relatively times. which represents EBITDARM for was increase and is same-store same-store X.X X.X X% a times coverage care flat portfolio. times. year-over-year, our X.XX X% U.S. of trailing previously portfolio Within as The acute Our increase said, approximately year-over-year LTACHs represents X.X States our flat coverage of our total

minus increase line domestically with at year so, our right we’d continue the make hospitals the back this target in next range. to up or like or XX%, is Acute XX% portion plus investments our the up European care see bulk to range. the Over to of

to are three Steward XX%, at top tenants XX% at XX.X%. Our Median Prime at and

more a As approximately no own believe X.X% know, Currently, you because on is merits. important underwritten than most number its concentration represents each property we the is our property-by-property facility portfolio. of total basis on

invest to last new in XX or investments $XXX the Over months, have committed our tenants. approximately existing invested with we million

We us relationships to over our expect continue to and have we customers new allows continue will as this annually built to in number Having valued above business. grow. strong with increase growth

in both also a U.S. predict we We this all Europe. are year. in will on on to working early of It of number too them projects have here close which is and significant

working However, note billion are and it actively at €X we than the projects U.S. approximately here to $X valued Europe billion in important more on in is currently that

ago Center even the Redding Redding news work to of the dedication, to the volunteers only in surrounding open. and fighting of also in Many employees devastating the to work the own have and things of literally downtown the commend want once has their a residents hospital, fires. those dedicated projects area been a I Redding. signed them in their our and and this of Regional of here fabulous destroyed us healthcare the losing areas operation Without been success hospital their firefighters this that fellow they has doctors success the they at threatened but This residents seen Medical Hospital XX I for the people large have to and The did the want thank fast-moving their in MPT. very comment despite to take site we has Steve? Shasta hospital never Redding reminding years the commitments. to a Prime-run This especially of on not probably last At invested for the vital the homes patients could to to on has been us hospital. update and the least about humanity. people workers reported will hospital and and XX The want the everything part that and week, this story ready we California. We you a the area important fire. fire had, stayed management on to much and to hospital fire. throughout the of Shasta dangerous very for the story. due these large moment all and in in for take car have is good of hospital, Reading, in I organization, work team opportunity serving

Steven Hamner

Of just to aggregate the of with of own Ed. facilities million. couple items was related primarily $X.XX to off reconcile $X.X this we normalized expect three that you, quarter million. this, to sale the $XX.X in FFO amount we Vibra FFO There $X.X on consistent quarter the which rent NAREIT term. or sell arrive on write re-lease This share reported of second a at in remainder FFO. Adeptus of of market expectations. million our quarter this to of per of the LTACHs XXXX, and acceleration Thank recognized certain The for we morning, rent unbilled straight-line related to rent Virtually, near normalized a adjustments normalized that of gain to are the all diluted straight-line the straight-line relates to of our fully the to

we This unconsolidated will few sale. $X.X in quarterly Post assets net interest value off the JV. over transaction, your written to million joint JV quarters, To next of recall will net regarding the be subsidiaries facilities. of One will in equity and that earnings that of attention closing, described have investment bring our the investment be of as the subsidiaries. form calls. recognize these equity debt the from the of the represents expect Adeptus point our Primonial. in adjustments the report now recorded we summarize balance the JV’s as will There we secured this earnings with billion is book as held remains the of may on that income, previously a sheet last want portion You venture on XX% finally for again. The the announced unconsolidated books resolve $X.XX I about two classification the about as last our balance assets final to presentation we

interest approximately results rate, $XXX of remaining selling two sale of along €XXX rate, or on affiliates interest, this for to $XXX in about increase yesterday’s the with exchange gain expected exchange at approximately newly recognized yesterday’s which We’re our XX% XX% a value million million, million. million, Primonial formed at an of again equivalent €XXX in in JV

acquisition, Our measurement any as and the for an be including just may in our operator. an Most transactions. you were recent our of by some other these and billion billion, IRR is have resulting resulting that investment acute been a of that to the MPT, objective from more tremendous our at gross recycling, of potential a outcome in $X.X future aggregate reinvestment in also about indication expensed for hospitals, exploring perspective, order than an cash, created exposure U.S. diversify to aware that the this From independent unlevered XX%. undepreciated assets of taxes value transfer outstanding structure importantly, shareholder time any $X.X similar of in single we are of clearly

delevering With such Primonial transactions, expected or the need JV, Ernest the and other we reinvestment. other certainly capital Vibra for as the capital recycling additional unannounced sales do successes not opportunities, but

of certain venture. additional to a we joint to Steward decided to sell necessary re-tenant So, continue the have the take hospitals, or create rather than time

attractive more Primonial more mentioned back sale transactions much than remarket our with negotiations also diversify or and have Vibra. Ed expectations when to has partners from a our valuable we venture Steward to away result, As three we in over the to very the Steward the other these purchasing the arrangement. the hospitals, if reinvestment to about be and lease JV potential two mortgages of do to portfolio. proceeds expected the previous certain for a to LTACHs case, which portfolio to single are portfolio and expected single few properties, from quarters. Vibra already impact Moreover, certain JV. operators And of buy similar much portfolio any is we will next operator joint any by of owned rapidly that new the our the decide a mortgage entered improving makes this converting of By properties

that transaction along approximately but So, I exposure not about provided cash $XX these only X%, in with our for will million simply IRR reiterate this results investments LTACH profit reduced proceeds. and to outstanding

investment last our consistent the new the May, call leases of area large Phoenix the lease we long-term with Economic Since system. terms grade master in Dignity Health, quarterly , facilities a X of with lease. for not-for-profit substantially are Adeptus. rated terms previous Adeptus signed Regarding a

$XX to the economic expected book-value XX which terms. that million substantially operators, is resolution agreed These of agreed approximately new to facilities to Adeptus of with to have plan. are X the at also We be two the of as consistent the part with to of facilities leased MPT, sever of one bankruptcy we previous Adeptus terms

of of to alternatives for to $XXX $XX advisor close expense to the another the guidance have we credit approximately repay fully of with the that normalized with million, At in lease proceeds a to on today. able to end XXXX shortly times, quarter. consider and both of the the engaged REITs among Adeptus facility this eighth XX have the income, master remains Ernest plan be the the uniquely After our and approximately full-year for will We FFO, as expect debt continue sale these remainder we million, of for to using position we after balance transactions. This many multiple a rental time, million. estimated regard to determine EBITDA we our closing million, $XXX the $XX PW with financial lease. market and third subject about on We these book-value transactions approximately the of facilities to of net and of impact cash of or With JV net believe will reinstate will X.X be and revenue, puts prior in year. interest it will revolving facility to approximately other we June attractive seven hand our book-value

end be result expected that merely a recent between of have diluted more and pipeline such increased and and be at described. $X expected pro per that but this of We while diverse just leverage annualized of pointing and share. to clear, billion normalized range, is transactions leverage, operator a we of acquisition full maintenance the levels, a share, significant substantially a range sector-leading per diversification. will liquidity for reinvestment basis broad FFO establishing is are guidance leverage $X.XX Ed along than cash opportunities pristine time maintaining out prudent of forma not To the ratios, balance reduced with to On $X.XX FFO sheet,

demonstrated have very that growth accretive substantial, unlevered opportunities. the outstanding, generate We and we near-term, our ability to consistently few for And IRRs offer are investors. our among REITs

continuing execute about Operator? for excited that that, are over with will We plan. to And I questions. it turn

Operator

come Thank Michael from you. And RBC Carroll Markets. line Instructions] [Operator our will Capital question first of the with

now Your open. line is

Michael Carroll

want about assets should to to Steve, how of can you bought additional recently potential Steward do those exit some we the when you some re-lease facilities, think that? you doe provide of transactions? these many or How that ones regarding they the details sell? say want And Steward

Steven Hamner

in for Today, Mike, we are two. significant negotiations

One actually that would different different Steward sale and release other of operator. a of be the has negotiated exit in would those to facility a the with operator a be a

Michael Carroll

operating plan So, stopping this on these two?

Steven Hamner

continue They Yes. exit will Steward be operators. both operated different will them, Well, Steward exit to will just both. by

Michael Carroll

Okay. And then, sales? how exposure this how reduce to -- could And you Steward? quantify much these will your

Steven Hamner

were to is volume expecting we the at time. we No, very it venture’s can’t from joint what But, this transaction. in similar

So, point achieving result being, we generally. are same the

venture. lot quicker joint We are doing friction comes that with it of a without a just establishing and

Again, we significant the that. of by notwithstanding us in finish owned there joint what that. Now, we portfolio to results affordable worth may makes that on we is to the Primonial the elect well new future it discussions of partners. with to go much Once reopen real having bringing back mortgages that that for venture to with and those portfolio, sometime very more Steward avenues indicates that we that can estate, capital mean by got we basically that certain rationalizing you may the the the tell did converting in friction But, very And I and well future. is partners. attractive

Michael Carroll

are going looking that bit attract that you’d historically? and now? highlighted talk What’s the a to deals know number the the are that you billion on does of reasonable And deals What how you’re be I the those interest tracking. X that to little currently about about investments expect as is can of at then, you And to close to you? there right compare you deals type

Edward K. Aldag

of rehab the an you It’s care European primarily the hard the and some are the some in U.S. be hospitals, for the million. almost the they in rate least be are there general to in give large. to because -- acute U.S., it on but of think reasonable these exact market part the $X hospitals. number, that portfolios they are all the size $XXX success acute success that be in very number German care around spaded to rate expect But, Mike, would most at I somewhere number billion to all and with Europe

Michael Carroll

German the doing to venture Question Okay. that joint you’re be put be be going acquisitions, that yourself? by or would

Edward K. Aldag

doing by ourselves. that been We’ve

Operator

will with question next the of Baird. And from line Babin the Drew come

open. Your line is now

Drew Babin

redeployment. and from be Median reasons Question Would a any on Europe directly within redeploy need from for the standpoint? the proceeds out formal dispositions repatriation the JV to promoting

Steven Hamner

No. bring risk. That’s amount home our expect, based expectation. as And denominated of to to But obviously, that back revolver. significant rest back will currency be dollar we do But, reinvest is assets. just home able euro in to to to subject a Ed repay of available the bring the euros it described,

Drew Babin

Okay. context redeployment pipeline, far obviously the hoping months if talk in was cash so? then, or could general XX to about a the and how U.S. GAAP and as And I they’ve last in the as potential over very I trended Europe, yields redeployment and some you mean

Edward K. Aldag

They In the six in months. in flat stayed in last the much last a certainly been slight the six much last there’s last haven’t -- months. uptick change had but relatively not and the XX probably months,

Steven Hamner

it’s what seen not increase. what’s a lower books run are environment the able tell at. and Europe rising a the is So, you for they much on it that the to haven’t where certainly lower you, hope here, our estimate reinvestment in work rate, rate would we’re full seeing modest we post are I -- gave than we today we we actually than put GAAP to rate very average frankly

Drew Babin

last the question, some your of or one year rent that guidance was as to in a year, facility re-leasing was of guidance of expectations just prior the what for to guess into the ahead relative Adeptus there from outcome loss the built was expected expectations, kind your is and paying going of it Dignity, the is you beginning? that range to I general your the pertains Adeptus And then, the

Edward K. Aldag

were that quarter size. from beginning we expected the announce same to that able the transaction of We Colorado think as I the the last similar

to facilities. And Adeptus demand were venture all, I and leased got master had what those in systems. beginning joint respective properties XX -- properties, were lease. hospital from both we the between they was X Adeptus the every think to the those right a After

So, from lose we not to the the any on transition. revenue beginning, expected

Operator

the Markets. from Jordan comes question KeyBanc Capital line next the And of Sadler

now is line Your open.

Katie Holland

This on everyone. Hi, is Katie for Jordan.

your by interest prepared guys in the you this with anticipating your or real upon transaction the remarks buying Apollo. and Could estate? RCCH comment LifePoint touched guys of recent financing merger You in appetite about in the

Edward K. Aldag

is short I that Katie, very think interested. we are the answer

a long be working certainly expect have relationship working pleasant good with we in future. We been And the with to and It’s a very relationship. continue Apollo. to them

Katie Holland

the those the quick could And cap disposition the for you used, guys then, one. rate give LTACHs just on on you a X quarter?

Edward K. Aldag

XX% a it at not, was transaction did We attractive roughly a us. for but obviously IRR, very

Steven Hamner

million gain, And $XX Katie.

Operator

the Okusanya question from next will line come the with Jefferies. Tayo And of

line Your is now open.

Tayo Okusanya

situation you to trying your statement efficient kind structure, a looking understand despite the bit a thing that, for just I’m to were same getting you in a on more different little earlier the regards but of are Steward better. way. In basically

guess, figure I’m re-lease other gotten JV. to proceeds it and I to new scenario I trying just hospital you what they -- So, that if the quite how one is equate there out understand or not in the the then actually of is, sure asset, you and from sell proceeds operator out a I’m

Edward K. Aldag

we the object in Tayo, substantial further we earlier, real or proceed. objective of diversification. portfolio to Steve Steward remember liquidity necessarily with did have any process proceeds The pointed that out joint primary available the that reinvest. not venture was was

So, that through we method through would’ve limited same we this doing us still previously. the the of provides were gotten venture portfolio diversification it discussing potential the joint with

Tayo Okusanya

a There more much sense. the goal. of same. perfect That’s a pretty makes diversification Okay. still That is

Edward K. Aldag

correct. That’s

Tayo Okusanya

Excellent.

I’ve that second post the how you coverage, is the that? LTACH stuff, that stuff the is times low about everything on do the you Vibra, helpful. the Ernest think sales coverage all or LTACH now. about on what That’s side, that And that left. the -- assuming then got one all, left, have to Okay. I’m of

Edward K. Aldag

are an Sure. fee exclusively Ernest related There present EBITDAR approximately that the facilities a ourselves artificial the to remember three X% always have But, is Tayo, it because to number. facilities. that penalized is in number we that adding that Ernest. are almost not management we other coverage

with coverages yesterday hospitals, look performance perform got -- very easier So, report continue what I the as well. for future look is. the the coverage to number it is defaulted some in facilities. continues quarter at got the Ernest range, additional the think they’re is in to it to And of the to operational in EBITDARM all And there what quarter or And about number LTACHs And Ernest they the portfolio. better bode the I I and LTACHs, remember, also well. the of was roughly Ernest that very just remember XXX well all arrears. numbers the rehabilitation be which the which last are these the information in yesterday, we one that And eight of Ernest cross have

Tayo Okusanya

charge all just of the assets, provide Is for cross-collateralization with overall unquote of coverage or number…? what’s the want there can whatever a fixed you that to number quote Ernest with you other kind terminology kind coverage use of the

Edward K. Aldag

their including So, of of their in coverage Ernest is excess all X facilities, for times.

Tayo Okusanya

again that’s And helpful. cross-collateralized, one it’s all master That’s all lease?

Steven Hamner

across the to frankly of any types lease. facilities, real mortgaged I’m master mortgages lease with the are four and not are of but all if those exception master that the sure It’s are

Tayo Okusanya

in soon. I very forward you do Europe to helpful. look That’s seeing something

Edward K. Aldag

Thanks, Tayo.

Operator

Ford MUFG from Securities. question will Karin with come next the And

line now is Your open.

Karin Ford

a RCCH an urban I cap think versus wanted hospitals on that do And Are be just you know current should are on little interested LifePoint rural your rate follow-up deal. to assets? I portfolio. one? than the bit there hospital you rural a more LifePoint’s premium rural more

Edward K. Aldag

number Karin I past up as my Alabama. But, people for town definition Well, may a than has really in very, discussed communities be some of no, at that be But speaking, growth a rural in are least grew different the in in. South that we’re hospitals we small and you because rural I’ve potential. generally XX no with would years, generally LifePoint very of in not hospitals very interested rural interested and

Karin Ford

improvement to coverage. you give what as You you a Can -- nice just definitely think more drove that? acute saw care what think color you in us

Edward K. Aldag

Well, operators the much what I past you We and was country. saw this than saying don’t across HCA’s reporting different are what think it’s healthy all week.

the also and is the improvement Prime the is than growth. last Hospitals but from improvement some months at makes integration, up operations, of certainly their the look it in that focusing made Steward efforts XX probably of recollections which over their rather Prime’s bulk but their You the the on they

Karin Ford

I from interest would with vertical nursing the increasing healthcare Do one wanted you care et and ask future own and you participate think ProMedica, to to Ascension, MPW integration about senior customers? systems cetera. housing skilled senior and for the like that’s and by operated its of

Edward K. Aldag

which are our and very not in obviously, small facilities own nursing referring very, been transactions. the But, a -- our outside with vertical currently of probably out they think nature, what integration, I their that comfortable to in are integration large portfolio. From operators to. total of have our that you’re have no, a of going we but we very and have we not our a They some of specifically some of the mix really portfolio opportunities hospitals the it to think that do depends very is the like talk I are are skilled one there properties are answer each last that happened the I’m short which operators. question portfolio, part Well, some have on that know. about of

Karin Ford

right million going sequential pickup G&A million [ph] run And XQ, from just one last a to There in the one forward. almost on side. was the XQ is XX.X modeling rate there $X

Steven Hamner

a certain it’s timing related estimated issue catch-up to No, spike expenses. quarterly not. is That of

been. lower slightly have QX So, been; have higher than QX should it was slightly than it should is

Karin Ford

average So, the between roughly an two?

Steven Hamner

That’s right.

Operator

the And Eric of next comes line Fleming with from question SunTrust. the

Your now open. line is

Eric Fleming

the update Pasco RCCH Any progress there? on Hospital, any

Edward K. Aldag

One day.

Eric Fleming

All right.

So, they’re still there working in fun through Washington? out all the

Edward K. Aldag

Yes.

Operator

next the Stifel. with line Chad of question comes the And from Vanacore

is Your open. line

Chad Vanacore

the towards post you just of this had backtrack a and in FFO third going end little $X.XX am that’s to commentary proceeds right I’m bit transactions that that So, run guidance, JV Michael’s a expect rate because quarter? of But question. I from issues I phone to little $X.XX Steve’s reinvestment

Steven Hamner

correct. That’s

Chad Vanacore

Steve, then, does And that that include or Steward contemplated in that’s acquisitions number? not

Steven Hamner

we be The no, will one of an remember, we in transactions there. expect not lease. mentioned, simply Steward assignment of the that’s But those

impact be will one that there case. So from any no in

Chad Vanacore

re-tenanting get little a of is mostly redistribute that? wanting Steward MPW consider And just or just to is hospitals amongst risk its [ph] property, consolidating driving Is portfolio bit at core much? these then, what are it we Steward is the their to then, who And harder or ISS operators? legacy [indiscernible] or sale which this so

Edward K. Aldag

No, them because is people okay area. they one and plans. Steward then asset, and have with given readjusting just from original primarily the the And certain particular And portfolio. it’s is having that that exiting their been Steward it’s won’t the Steward of some their approach specific think offer they other

Chad Vanacore

then, one last just And one.

that moving You are keep lot the you their the What now? some are at of that contemplating these are new of guidance guidance end from pieces after quarter transactions releasing of a closed.

Steven Hamner

the get. we Primarily fewer sensitive more The the again have results the and timing Primonial. primarily, months left year, then on in

So, primarily it’s timing.

Operator

Sanabria comes Juan with of America question next the of our Lynch. And Merrill from Bank line

Your open. line is

Juan Sanabria

The ‘XX fair way start that any Is Just XXX on be acquisitions run of a ‘XX it? rate, incremental question that’s the or guidance. a think may on to ex not number a about XXX to Chad’s to dispositions. kind that’s number,

Steven Hamner

we No, we that imply not that would of our that. I are because January XXX% at reinvest on so Juan saying X all don’t proceeds and think

and just reinvest. reason trying the opportunity to indication results of and we give strategic We are the some when for the do

we ready the described and when $X that not pipeline, of at than reinvest potential how reinvested. billion that expected. could But this to with be we’re point will handicap worth earlier much Ed’s Now,

Juan Sanabria

sounds are have It huge it around a like rolls you not but reinvested the say? what X is time this, be trying January may to by pipeline, you

Edward K. Aldag

be certainly Juan. It’s won’t well,

Juan Sanabria

I Prime. just touch could then, And hoping was on you

to sort be DOJ. an as any that basis? or share on of kind penalty on you agreement coverage to. agreed any forward you and a Is dollar there how have about Agreement, talked what You Integrity is Corporate thinking number there risk could if the of could guys costs with And with any of that are thoughts about a they the MOU incremental go that

Edward K. Aldag

this to in the is is think Agreement. a And is going always very as the Prime detail. They this along We There which press negative Agreement. are all outline And of the it near Prime them. think aspect to news Integrity future operations payment news. is But, from release just Corporate that a great good will are there important will behind issue on Integrity with dollar with material the the have impact doesn’t exciting there any it will be of be these most that’s certainly that Corporate most their things. in

Juan Sanabria

can do several on you to fairly then, and G&A, And rents, Karin’s you as the last assets guys guys over significantly get goal percentage when lastly, you grown assets about the or in what’s think of years. questions How efficiency you benchmarking of and there. that do have think terms a

Steven Hamner

today. satisfied with are what the portfolio I were pretty and now, the low of Well, year kind that last we we think Xish, reported given Xish we

expect by But that to of to growth, get it at very it’s G&A were with we expect continue come timing As once continue we to being grow, we $X you a that billion, period to got notwithstanding our modestly down to billion. to spike period. from presumably point might the very, again, volume attractive we’ve was burden, we modestly. virtue than it back to hard come bring But down when continue down $XX

Juan Sanabria

low X is sorry? the And what number

Edward K. Aldag

from standpoint, want dollar Juan. You a

Juan Sanabria

don’t You was a mentioned X, percentage. that if a know low I

Steven Hamner

X% revenue. of

Edward K. Aldag

sorry. revenue. Yes. of X% I’m

Operator

session. does the remarks. question-and-answer Thank to This I turn conclude Ed Mr. for you. closing like Aldag over now call would back today’s

Edward K. Aldag

and listening thank Sabrina, your and today of in you, for thank all questions. again you for you Thank

If you you very ended, have any is hesitate additional questions, much. to once the call give Thank call. us a don’t please

Operator

today’s Ladies you today’s gentlemen, conference. program. This thank your for in participating and concludes

great You disconnect. may day. Everyone, have all a

Medical Properties Trust (MPW) 2 Aug 182018 Q2 Earnings call transcript