MPW - Earnings call transcript Q3 2019 | Medical Properties Trust, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Q3, 2019, Medical Properties Trust Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we’ll conduct a question-and-answer session, and instructions will follow at that time. [Operator Instructions].

As a reminder, this conference call is being recorded.

to conference like host, to now Mr. would turn over the your I Managing Lambert, Director. Charles the ahead go Please sir.

Charles Lambert

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

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

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

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

subject other course and Act other of and the the from projections are meaning this forward-looking may of underlying make risks, statements Private financial statements factors events will and such that to statements those to Litigation known Securities unknown XXXX. within results During the cause differ certain materially our These and/or Reform future call, and be uncertainties, forward-looking of we expressed may that statements. considered forward-looking

the future you update materially those the could provided Laws, discussion expressed the We Company that information. Securities results the to Commission the such in date differ this for a being does refer required filed a Securities reports and of any actual Federal Company's call. cause not The of today to events this as factors duty as is Company's the to information only and or Exchange with by undertake except from

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

and measures the www.medicalpropertiestrust.com refer financial directly our most website comparable related also to reconciliations. at can for You

I Executive call to over Chief will the our Ed Officer, now Aldag. turn

Edward Aldag

you Good earnings year for Charles. anticipated you, of quarter on MPT. to ago, us year all XXXX that to A record joining Thank we noted we today's morning third and another be for thanks call.

that fantastic Fiber million here $XXX project we and for for for As we the projects can $XXX we the in have say additional U.S., BMI may million the year of been in done Healthscope Saint and yet. we Medical million $XXX customers. in a U.S., for close not million with for the $XX million Hospital XXXX, for the certainly billion closed $X.XX of and in million Australia, the in the billion has Neuropsych for Watsonville Prospect for be $XX U.S., near U.K., development million in for Year-to-date, Network transactions Ramsay million Swiss million U.S. Switzerland, U.S., $XXX existing $XX in Harbour Luke's U.K., in $XX $XXX with for the Halsen in $X.X

the the been XX% with making initial Australia. U.K., Switzerland in Germany relationships. investments investments expanded while U.S., in have our investments of XXXX’s and and We've new

opportunities international with all globe. and the to across domestic new exciting see grow to continue We primarily operators

with robust in we billion Our pipeline more remains actively are than potential working. transactions that $X

We very care long acquire transactions, some were strong of walk Kentucky standing which recent an three through and me more of in expansion with approximately IRFs for million. operators one the post-acute top of the in the to California was Let of able one our $XXX Vibra, relationship country.

these EBITDARM Vibra's is coverage times. properties illustrated for X on purposes, of the are but cross All IRFs X defaulted,

have markets LTACH's coverage and the with located a $XX facilities and X and LTACH's part have our U.S. are already are priced group expectations throughout of approximately As overall X an for profitable networks the times. These exceeded year-to-date. of properties, for approximately attractive this we of required These strong million. referral well

reasonably Another average executives market. Watsonville, with executive acute facilities. in including within The previously to operator Several the care with years plus team were for of Halsen’s California an new of was owned XX experience, Halsen hospital executives, a veteran executives MPT California. an healthcare MPT of Healthcare, is closed transaction that comprised of these

We delighted to are back. welcome them

made best-in-class just patients more a the not are a Indiana, psychiatric XX conditions They the third currently cases the acute XXXX. we markets that of underway Additionally, closed opening and in with opportunity complex MPH with is an Texas on hospital the beds medical $XX known operates and is of neuropsychiatric in quarter million growth hospitals behavioral XXX in care MPH health an the organization company behavioral estimated neuropsychiatric focused development largest Houston, a freestanding market. traditionally on the for for positioned in underserved care providing facilities for with severe new is equipped into in as in today. hospitals and health co-morbid bed near-term well treating with is Construction need country. psych XXXX. four

the also largest in by previously among Healthcare hospitals the the operators, and develop hospital quarter, we're the this close During on Ramsay transaction acute Ramsay purchase U.K. to third care operated new world's relationship. X excited we listed to announced is

the Holdings Finally, Prospect completed the announced billion we Hospital previously Medical $X.XX for transaction portfolio.

Prospect in renegotiated on continues growth focus reduction contracts and are performing with tracking benefit payer our strategies, as to greater and from cost hospitals Prospect underwriting. opportunities. Our accordance expected

the as the first discussed of previously transactions With the half transactions the year. well today as from announced

history, largest still of achieved have quarter already single go. another we and year have We MPT in acquisition to growth the

we of such announcements of quarters. our we announce We and able While I any do on pipeline. couple expect when make to we will certainly the over can't predict in able that be with properties next are working be will the to close

X of including Pennsylvania, in Germany, in portfolio. EBITDARM Now, times, hospitals, which in I’ll X X.XX Florida, in care quick larger Texas. IRFs, and acute provide a a in X properties Louisiana XX represents X our facilities and Germany care XX to general slight is Ohio, X primarily Ohio acute driven XX our a in X existing year-over-year, in volume declines XX in on point update decrease hospitals. few reporting, and Idaho We Same-store X our basis same-store X acute coverage slight at X LTACH by added in

Just arrears, referring quarter report so this to to quarter one we know the in the is remind second to you, of year.

to A transfer quick discontinue to on the operations to MPT a rather made decision of in the facilities other under rent newly minutes services, will X facility lease. their Steward county-owned Luke's strategic billion as those the Banner to competing facility minutes planned renovated Steward update the to Steward, a pay Arizona. and master to full made Saint $X close required decision They some west, east. facility Steward and continue the with some X operations at the

to fine is their and Stewart close strong see positive improvement coverage tune be decision line portfolio continues their XX%. a expect continued improvement their site to the ratios. its bottom coverage. for and to currently XXXX that's looks expects We their Steward’s already to concentration during an to and of remainder

recently is essentially X.XX EBITDARM the have where X.X a times, combined the is in times LTACH’s acquired that coverage X of times times. year-over-year, IRFs flat EBITDARM probably IRF Vibra the X.XX is which from increase flat not LTACH times include note X.XX times. coverage saw X.XX a U.S. essentially to is portfolio compared which to approximately is year-over-year. X.X% does important this It coverage to coverage

facilities we Vibra time, currently that including At wildfires been of LTACHs none are our of reminder, this the a affected of have well in the represents As portfolio. total none acquired been portfolio, all threatened. I of you our and have just X.X% aware California. know

hospitals prayers have them affected. them all However, their homes many I and out take to these of to this had and thoughts families. in opportunity know our their working like go the to would that people personal let

to At our financial Steve this on performance Medical and specifics Steve. go of time, the I'll let Properties. health over

Steven Hamner

FFO of the quarter continuing the just we is of we we Thank billion consensus of per following after results expectations, has million XXXX. importantly, during third announced you, Ed and more $X.X $X.XX last This addition Ed. MPTs and share diluted morning, as that quarter. even the exceeded including $XXX described, quarter for third growth reported invested the again These but normalized

billion $X.X of represents growth XX% XXXX. the of investments beginning year-to-date Our since

be the MPT, took $X.X nine our XX aside, to it months in us years acquire alone. that an only same first amount at the interesting assets, last we invested that as Just us billion here to in may have

any In then of and point out will a on focus this items year couple case, of quarterly our near-term I related outlook. results remainder and our the to

$X.X facility we operator. quarter, recently, of facilities. third agreed a investment for First, fund a a roughly development completed at leased for the California million Prospect and hospitals hospitals of to long during we rehabilitation in portfolio acute England the to acute specialty investment, at in Houston $XXX inpatient $XX a million Ramsay million $XX acquisition about X $XX billion long-term $XXX a of a points health hospital, acquisitions behavioral Most term behavioral lease X million to X million various

reconciliation, our in FFO FFO. approximately that related Included for transaction, tax the normalized third in our related the other rent, accounts adjustments and miscellaneous items fees straight-line to for quarter Prospect $X.XX effects financing the aggregate of

net about addition, such in is then no In certain in other on recovered [source], to interest primarily and related that FFO. $X.X we expenses Accordingly, is and in from million type recovery is groundless property directly, our triple impact pay included tenants included the we but income. there expenses

This run long-term million per expected the rate $XXX times range, in the third morning, our at annualized with leverage revolver end per of $X.XX previous share. $XX between This our current refinancing and in the quarter. retains $XX.X G&A of assumptions between state million million $X.XX $XX our quarter our of expenses approximately estimates estimate balance reaffirmed and and X.X funding. million regarding were low of we the

MPT developed the among expanding of and operate. we REITs in we of bullish press where We real opportunities. the are of rapidly stages a created commanding particular areas early position estate Ed near-term very has clear market world made in our Our release believe for have that the in on hospital actionable that a economically pipeline already acute acquisition comments healthcare

acceptance benefits operators, at of and to growing of high that the will Because driven accretive market lease This a market continue recognition expansion of being the to percentage of long-term hospital core the leased, as foreseeable are participants. only of grow real we of hospital hospitals by have a part acute immediately other estate future. for is financing investors continues MPT a on and level sponsors, small this pricing market expand confidence

announcements, are unreasonable today prepared specific near-term. any believe we to not is not meaningful the acquisition it While expect make in volume we to

permanent remain long transactions, capitalization in accordance levered and our plan rates we financing and strategies. modestly with and for acquisitions, our to these investment to an spreads underwrite target we similar we As year-to-date expect intend standing

be And with will questions. Operator? happy we take that, to

Operator

[Operator Instructions].

Chad Vanacore Stifel. Mr. of question line first from The comes from

Your line is sir. open

Unidentified Analyst

morning this good for Canetto Hey, on Chad. is Seth

of those up kind you First the is your seeing, strong just on new pipeline IRFs hospitals in of question, the acute Can opportunities? expand like terms in markets? mix or into of markets break acquisition to care that you know, looking then opportunities And international or are you existing LTACs? focused

Edward Aldag

if Seth, it new and invested markets is in our previously any not almost in is it acute markets at previously exclusively, care not exclusively, announced hospitals, and time. this

Unidentified Analyst

about then know looking a Thanks. that? saw are some think recent same-store you those think pool trends same-store And a remarks. that the, I should pool? And trailing How the volume. in like? the your And mentioned just Okay, how in does you indicator. the impact and in coverage the hospitals that assets should on new of at look What the we that's we slight opening said that great. decrease about

Edward Aldag

don't all HCA a past for have they to-date But finishing has decrease you there was volumes Yes, a second it -- rebound. their for our yet, the in since that, follows in of their HCAs operations the and on nice announcements strong will But it operators was obviously HCA reporting remember what the numbers reported the what showed quarter. this then internal lot saw We are just you and numbers panic is of slight week same very quarter if markets. seen reporting we've

Unidentified Analyst

Okay, concentration that once completed, down at concentration do that then are mentioned the Steward going you see you XX%. thanks. And of these in Where some pipeline? your you've deals

Edward Aldag

pipeline does any Well, obviously it'll meaningful the include continue additional Steward down to because not properties. go

number the XXs. expect down we future, be the that As distant not in in – mid too to

Unidentified Analyst

questions. right, All my That's taking for Thanks it great. me. for

Operator

next of line Michael Capital Carroll RBC from Our comes question the from Markets.

is open. line Your

Unidentified Analyst

for on Hey, good morning, guys. Jason is This Mike.

Edward Aldag

Good morning.

Unidentified Analyst

Around those good just is get guys were the coverage. color how what the negotiations bought, such achieve some you LTACHs around assets, like able that to to trying the and for team

Edward Aldag

we stages think of think for wanted. And basically that tagalongs IRFs got were the majority great they for we we LTACHs. good The pricing pricing LTACHs final those got those and the or the LTACHs impatient just comfortable the have we double-digits. we're on the criteria Jason IRFs of initial for been we through numbers, are. of of where these in start is And or some all are with their coverage

about very room there's good on a price basis. with of we feel the therefore we what And them So, flexibility. in got per obviously amount a tremendous is coverage, bed for

Unidentified Analyst

in it, coverage the touching just and the you on health underwriting in guys is okay. on then And off, behavioral more could for? that are is this that you developing look you and would opportunities an market, type seeing class Got the what be interested asset guys of also what you touch like,

Edward Aldag

for time, off. never We think sense scale the more it long looking do be is to that that make but us. we've with we deal for We've at that operator been we've on closed Yes, something it just the enough like them. that transaction a last it any won't this they had to to see would we

So, transaction. on an From an it operator underwriting times the IRF standpoint, why what with and us reason that we're similar very X.X $XX coverage, we gives to X it’s a coverage. seeing did type to million it's scale

Unidentified Analyst

it, Got relationship expanding with of then me. one, Any Prospects updates last Switzerland? on And in that Infracore for the okay.

Edward Aldag

we in over of expect beyond doesn't standpoint now the continue increase, ownership continue immediately even size will ownership investments our grow, to a or from will Infracore that that will ownership Infracore, to Certainly medium-term that our expect even we Switzerland even we that so, at our in the certainly that that that, but grow, if increase. the have ownership

Unidentified Analyst

Got it, guys. okay. you Thank

Operator

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

is open. line Your

Unidentified Analyst

all Hey $X.XX look a is with in by the about and achieved at acquisitions in place guys, XQ, XXX everything rate ‘XX? that for run to good morning. Thinking rate This was XQ be share Kathleen run such Jordan. could $X.XX the

Edward Aldag

close necessarily pro has on I $X.XX impact, are the that Not developments Katie, mentioned, be some capital that online that some has it fairly there's into an that still will come but should basis impact. built as a forma

the we’ve already, and a also. ongoing So, -- impact made this hope have activity I clear meaningful as morning acquisition possibly could

Unidentified Analyst

Okay, sense. your the previous guys IRFs. LTACHs appetite that exposures makes touched tagalongs one answers, of but I on that kind the of your kind think kind you this of for to are then you just just And upon of incremental for in like touch Can LTACH?

Edward Aldag

don't X.X now looking LTACHs that's, that Yes, we that certainly -- appetite that. We tagalongs opportunity look at an right But any exists we're there. additional we're some have at If that of get the total to will that don't We has the we expect portfolio. don't that's increase. at.

Unidentified Analyst

you thank Okay, guys.

Operator

line Deutsche the Our from next Derek from Johnston question comes Bank. of

Your line is open.

Derek Johnston

you Hi how everybody, doing?

Edward Aldag

Fine Derek.

Derek Johnston

Alright.

think for care. EBITDARM when So, coverage I acute are you acute coverage and a the here look range in cover EBITDARM comfortable quarter general general in about declined

the is? will say current the you would in included that how what they new And ratios? coverage not impact first, So, the acquisitions same-store, then secondly,

Edward Aldag

think every down. you about coverage whole, time it make if it naturally the is a going acquisition, Derek, Yes, we come to as

the the general owned X.X Our we've the plus underwriting coverage with we've that above hospitals obviously, we're years, times, acute care acquiring been times down coverages is new in But X.X hospitals total for brings and for that and X when hospitals range. rate, it at XX running in to average.

bit mode So, coverage. been because stated earnings a numerous in it's we’ve on we've the with a such growth – a that rapid calls, on little confusing

XX because coverage we when year. a always just just added same-store down, of to this it's properties total the the softening, you go So, see not

they've XX remember, our means months. same-store been for in properties, portfolio So, those being new

had same haven't seasoning some older that the they properties they have had. of the So,

that a softening with there's So the the there, nation. in saw some of natural volumes decline but quarter in was there second the along the rest we

Derek Johnston

rate? the maybe growth, I talk Can accretive to dividend great. extent you sub their the and modeling the sector dividend thoughts on wanted acquisitions leading already Okay, the path on the get and growth thoughts are when Board we're and trajectory. touch show possibly we to and accelerating to MPW your just or growing so the the to mean, FAD dividend of and given I what dividend

Edward Aldag

good Board in as attention, very growing of So and the our conservative lot outlook where the gets my necessarily per has grow our to grows. a forma been at view, especially that pro not personal we're cash one question year, periods grows, XX% as in and careful particularly dividend

example, policy in dividend number. for probably of the right that that's current is cash AFFO FFO run guidance we right the So, the run And now under rate. believe XX% rate about

straight-line have of a rent. component We fairly healthy

described pipeline, with rapidly. And grow do not continue just And acquisitions, focused we look closing and on but generate than we've that to keeping so that a wait AFFO these as just much NOI. acquired them that. results be to properties it your receipt as able basis, should will more continue $X be AFFO an for gives we ratio agree what we at announced room I'll FFO perception of that payout we as quarters. We execute fairly full us and we actually integrate to really do only XX% on billion the actually reiterate four then quarter until

Derek Johnston

thank you. Excellent,

Operator

from Our the from comes line Valiquette next question Barclays. Steven

Your line is open.

Steven Valiquette

Great, thanks. Good morning.

Edward Aldag

Good morning Steve.

Steven Valiquette

curious XX% made you wide you. are for sector operators related in Thank that’s driving of there that is industry to more the better or the that question. performance I guess was coverage. of think IRFs initiatives I specific taking U.S. XXXX? you maybe tailwinds think the in Thanks about curious to kind the that about IRF for more hear whether was roughly X%, comment improvement you I some

Edward Aldag

operators. a their portfolio very long Yes, saw announcements, recent their across as is, of they've has Ernest you all very well Board time. that's IRF been wide. on well. performing for the Encompass doing IRF That's been our industry in in

the been it's So, across all Board.

Steven Valiquette

Okay.

$X have additional other bit of pipeline. calendar more I'm happen some the if updated deals a timing might curious billion you could one of little quick calendar any ‘XX in potential billion Thanks. around been $X discussion the than if there's around still near-term The is ‘XX, or [indiscernible] pipeline any whether be just thoughts announced, the additional your in maybe just around

Steven Hamner

working the count doing optimistic this XX never But years, Yes. I've that learned pipeline to we're before After they about we're chickens for hatch. plus very my on.

Steven Valiquette

Okay, great. Appreciate Thanks. it.

Operator

Our Mizuho. of Tayo the next line from Okusanya question from comes

open. line Your is

Tayo Okusanya

everyone. good Hi, morning,

Edward Aldag

morning Good Tayo.

Steven Hamner

Tayo. back, Welcome

Tayo Okusanya

appreciate good It's back. particular about things. you. I that. want I be to Thank just talk to two

is very one of color rate of on IRFs just that ago, you first wondering could your The on of the about on piece think rate the it. talk curious of a it tenant one deliver if that, the large a the kind if and transaction. on capital LTACH. And on the kind appreciate they the little get Vibra cap cost could working the cap of rate I kind I again. they're specifically and of of they Vibra I you cap transaction versus about with a I'm LTACH of moved away because then thought was years they kind they interesting better top just of

whether is there? it's going offering kind of of just curious cost what's whether try happening versus their what capital now to kind guys understand to of capital, kind change of competitive I'm just alternative, So, whether more of it's you cost

Edward Aldag

been that have Hollinger I remember Brad you Tayo since together working and XXXX.

healthy So, relationship. a very long and very, have we

no portfolio nice were have our for the time a market was how of Brad acquire It were one we his very was to that gains that at our competitors some trying valuable of to properties us. were. us we at offered, from just of to offered remember from You'll examples most

Brad. of just both and us, literally for was for it opportunistic for So, us

equity, relationship We have he both for the one transaction. maintained Ernest operations the our and as

start So, MPT. had we've the that been just continuously, with the him. Brad amount of total with working fluctuated It's since literally the in we've

higher with rates Brad, they interest when Obviously, than they were everybody different our with the else's much early rates cap that original at have transactions rates times. days were. on were been think par we I those did in cap when

had interest to opportunity competitor we our the And just so the and some it sense. re-price and rates when it to came gains, he opportunity with take had down, made

it's it we -- this of a market From the of underwrote the underwriting But LTACHs well the think above portfolio, masterly at basis. to think particular rate for and are look well that rates are cap got under on we an what IRFs market are, in portion we're pay it. rates them. rates. so mean good hard on that cap We all of individual the at think from protected it's standpoint, for cap exceptionally particular payment We kind standpoint LTACH patient well new small I the require requirements, payment, positioned performing these our and

Tayo Okusanya

funding neutral going regards Got you bit I basis forward kind pipeline of all And front how a of kind what in you, up trying leverage just the again, staying in billion of you, about it's $X about kind higher versus of you, again, curious okay. that? That’s back $X of just the to, billion of bag idea on leverage the and going then you're little whether just the billion, nice helpful. and you have to put second and in the, thinking a think how okay that spreads $X get, thinking

Edward Aldag

on to, go a again, down. manage being really way growth able we be obviously XX% see these don't Yes, But leverage to numbers there big so the need will doing. continue spikes up and spikes feel to been up the with type in to confident plan balance temporary our sheet we we've now absolutely

accessing we've with traditional capital So far, been the in very forms. successful

U.S. dollar the You better we got offering. after transactions, pricing $XXX saw offering the rates in we at on under the another that, ATM Subsequent back success great equity we debt. to issued had setting and with underwritten July Prospect the million announced the on low record than long-term other we even

see challenge an leverage demonstrated. traditional maintain not not without without but discipline issue when fund is that ways So, the with we our to we that -- you're growing and it don't in so continuing rapidly,

Tayo Okusanya

thank Great, you. you. Got

Edward Aldag

Tayo. Thanks

Operator

of comes from Our Baird. Drew Babin line from next the question

line is Your open.

Drew Babin

morning. good Hey,

Edward Aldag

Good morning Drew.

Drew Babin

neuropsychiatric that the hoping to about was ask I you announced. development

as the cap within If the sort is – you of grow about health a U.S. context as this might of of this economics a that as of, going can we rate behavioral whether could subtype kind sort that be opportunity forward? you healthcare or the expect know, segment on talk well maybe growth far to within whether as

Edward Aldag

specialized range So of that from it'll received criminally handle think the upper well specific the our question and we rate type in cap of type rates. a is product It's it's not operator last activity. there's standpoint, aren't real in market. type patients, part severe section. generally the to think a do that opportunity operators patient. I'm lot probably handle a the how market sure cap to line care aren't This it. needed a obviously first that the acute that From of be, this I that of behavioral for big this It's insane standpoint Drew, psychiatric many able for of a that that a There of patients, care in needs is, hospitals

and So they're are very the very supportive, of payers supportive systems been The it. supportive. have very court

how So, looking at gets. small, this particular this have some a for big at. investment other but hopes we small high very point, we're This that and operators operator we'll see it more is

Drew Babin

kind it a we wasn't going is how how this knowing might the of the MPW Steward there. surprise in color the the then day, see Arizona and at facilities. And of the more sort about protect leases work, economics hospital and end forward individual the for master announcements these of closing of Thanks

Edward Aldag

wasn't some renovated new hospital it and added that that some done hospital banners that total there to $X us. that newly with the some We that knew I want planning they've particular prepared ER for. other the be is was and. other for we So County at tower issues, a for additional What and going mean surprise billion built was additions competition.

there Saint the other has take for for in hospitals dramatic were Steward be that at to out more just strategic lot to they the Luke's savings services the made and facilities. there know, providing their move And them them. really you some area. As will It of a sense other cost them

one through. particular there you'll their haven't particular that they're that going sell with CHS made planned on to number had at decisions think hospital a they acquisitions I other least think They when things original was recall so large selling, long-term. from see strategic but these that do of may I made You that fell hospital about that that don't what like all particular where they that total beginning had like with of where with We're on very that sell, something But total where very happy very we – from Hospitals from Steward expected hospital you the doing standpoint, may would and that new is are the the a very overall, the see they well. that. a hospitals. coverage are integration and happy company they

Drew Babin

be, pool transparency in the their in weakness a more own the guess, transparency MPW talked changes, their of one how from same-store another? comfortable items may or of the feel? from and receive be drop kind of in and a question really the as go in on that kind general to with, I HCA make far leases things and composition enough mentioned calculations about year one-time sense, you make kind general about does you're tenants quarter for kind calculating to know, adjustments things as EBITDARM or an and perspective very from to that general based like to comfortable seasonal acute that. you operators you Great on an get just the it's adjustments and which coverage these one number opportunity won't more sort coverages that for at measure slight of Just ratio sometimes looking me to that of

Edward Aldag

tremendous a basis. or quarterly information monthly do get monthly information on we but daily, we basis, Drew a Yes, only on we financial transparency. operation get amount and obviously of a statistical get weekly, Not

makes only think our but data that probably in database, a they our So, for have HCA big other have us to operators their I and insight the best have is, own databases of operators analyze. one tremendous Obviously, world. into operators hospital the

XX top operators the States. in of have hospital We the X United

So, of geographic we standpoint. diverse a real and from a data have diverse in an operator group hospitals big

the transparency that exceptionally we have strong. So, I think is

all for hospital is We know that and third speaking quarter generally operations volumes. the the weakest the quarter

in did really and Systems quarter and Health decline then even surprising. rebound the third the So, for quarter weeks been a little last of second bit has HCA in the announcement positive Community couple the

see same the I with I on we -- necessarily weeks when in as we'll third get volumes transparency saw the line thing quarter, next with HCA the said more volumes. initial that in we the the couple not from when we So, trends earlier the the but our are maybe community of when essentially operators are full

Steven Hamner

I just respect add very to you Drew the system. know, better with an briefly to of kind operators lack term, ability would a gain of that

Our go the definition it to and net is in constrained that what EBITDAR detailed lease EBITDAR can in income highly of highly calculating as come in and of is contractual amount. and out

So, or us I don't generally an think either. could been be has that that issue for

Operator

Our next from Connor a Berenberg. of question comes from Siversky line

is open. line Your

Connor Siversky

my Thank you taking for question.

tenant investments in run? be of And some You there your then as is Do a you diversification of address you see mentioned relationships. new this comfortable with involves this year continuing the you'd lot long a level your that trend pipeline? that acquisition

Edward Aldag

will which this part, working on trend think Steward’s we reduce that next you're expect do -- a because that we're the it the way of We trend our even exposure. pipeline to many you in is continue, that the obviously that operators do new see going that is purposeful We tranche on.

roughly property but a on overall comfortable forward that our and property than point basis, our portfolio said our an always with portfolio XX% could remind total have a in everyone a have if we go underwrite let time operator and up basis. fixed that an representing We were of less we now right on represents X% individual largest of just that me back second we

though an point even So, still represents it we at total this Steward portfolio, XX% at look of individual basis. overall property particular our on

operators you divide looking in into to to I if talked regions. happen have were Steward at something up and different this as it's ever many I those you And year, last said, the parent believe X particular I different about time And regions. individual would company, Steward really how

people and that we any underwriting the yes, large zone that diverse be mid an individual on of we there like somebody Steward. So, number, of basis, everyone the exposure should the also a geographic understand should we XXs. get one covered being tenant our But, comfort get in standpoint concern the with think property think that

Connor Siversky

thanks one any and rate movement small Europe assets cap your competition Edward for you or for then from current your Do that. And in then see any as maybe of target significant the see new me you any or markets budding U.S.? well.

Edward Aldag

cap fairly the for last been would tick U.S., I but I slight think in So significant that In upward, stable fairly months, maybe upward. think a the that rates be have there's a been XX tick Europe, the slight. only

chasing are the the literally properties I people money can. think same that in lot fast properties fund -- And Europe in U.S. as that finish the than more year of that while that are to have up move as there we their of a pension realized a to here chasing the sovereign lot can to there's take nobody wealth we is can some underwriting. funds other the

a cost may So, potential benefit. away any capital, of of do cheaper have the cost while economic they that that, with opportunity

Connor Siversky

from all Thank me. That’s you. Great.

Operator

time. at questions back the this turn I further to CEO would Ed no the showing now over conference to like Aldag. I’m

Edward Aldag

for very your as and today. time you of your interest always, And all thank you Jason, much. thank

Thank develop reach have questions after If please call, you additional much. to don't very hesitate any you out to that the us.

Operator

a and day. have Thank participation this gentlemen, and conference. today's concludes Ladies for your wonderful you

disconnect. You all may

Medical Properties Trust (MPW) 31 Oct 192019 Q3 Earnings call transcript