MPW - Earnings call transcript Q1 2024 | Medical Properties Trust, Inc.

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Operator

Good day, and welcome to the First Quarter 2024 Medical Properties Trust Earnings Conference Call. [Operator Instructions] Today's call is scheduled for 60 minutes. Please note this event is also being recorded. I would now like to turn the conference over to Mr. Charles Lambert. ahead. go Please

Charles Lambert

Hamner, Chairman, good conference and financial to Company. Secretary. Medical President, Aldag, Financial Vice the Vice Vice President and With Executive President Thank Hooper, Senior Chief to morning. discuss Trust Jr., K. Edward call Accounting today XXXX of Officer Officer; Steven and and our Hanna, Properties Chief me you, are and Kevin Welcome of Executive the President Rosa Operations first Senior results. Controller Chief Officer; quarter and

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

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

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

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

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

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

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

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

Edward Aldag

all Steve us our and Thank by to call. again to Kevin joined Hanna. Rosa today earnings and first you, be Hooper I'm thanks you morning Charles, Hamner, this pleased for quarter on of XXXX joining

You each them shortly. will hear from of

announced past the me For of say we're at least our $X.X to strategy a on joint of you've total recently billion interest generate transactions a several on capital of that that quarters, progress XX% this the X liquidity additional executing of I'm Utah executing in year, XXXX. manager. heard multibillion-dollar liquidity we've to asset strategy, venture focused sale billion hospitals leading strong to with made in share including this $X pleased allocation new a

repayment debt, full of the down transactions Australian proceeds in was to loan pay these used near-term including that We've our due term XXXX. from

Importantly, initial getting we're expect target, while year. now the already we've reached to just liquidity that started. XX% for exceed of amount our And

at early results for is there attractive assets valuations. strong our Our prove demand

remain additional to We engaged have liquidity numerous several discussions. and levers in we generate available actively

flow executed, already expect demonstrating throughout transactions cash in to the year. embedded As we portfolio continue value the with and potential the our

to deal Steward to take commence restructuring all directly want obviously few with we to share attention week of XX process. to And perspective decision of Turning filing. There a Chapter earlier you. our this its a been and has on great a this minutes media

had Steward day Bankruptcy an through opportunity you've Court. with that the filed if First, the read U.S. first to declarations

Steward story got clear of how a will here. You find

$XX a everyone, Steward orderly orderly of and best fashion. Steward or in is was Notably, facilitate of hospitals financing no a million as made in We an will interest new timely an and debt rent operators mention the help that retenanting achieve sale contributor to to Steward's distress. of Hospitals to bankruptcy that believe We transition we're of in the that. providing believe to firmly committed

use clear, providing this we additional ensure these not patient to of to initial have committed Steward the be expect beyond this any continuity We financing $XX funding of care to To accelerating million. hospitals. while retenanting

principal primary repayments Steward financing the as financial all wasn't we said type I they'd of the is paying never interest cost before, as for stress. to small a hospitals. total paying is And factors As for facilities, represents on not because buildings stress his of list never contributing Steward of rent fraction financial of by because rent, be the hospital's free. some mentioned know, virtually which are a That's rent, on revenue and only

permanent misinformation healing seen to reported estate we've would resources them model, that our provides business fact recently be While and a redirect operators MPT affordable mission, patients. used hospital cash enabling substantial that real great about primary the to of capital otherwise the for their remains deal

We would it be continue by the portfolio. making details of these us the our of will Rosa to until are discuss to be they over pleased Hospitals. interested Steward It with for Rose? discuss approved inappropriate court. I of turn we transactions performance now the with to in progress to are the each parties the

Rosa Hooper

Ed. you Thank

past beginning comments. across As with the take of quarters, few a you real the highlights our high-level with portfolio some critical estate, of I'll hospital through few

our sequential we of across During pleased year-over-year portfolio. the improvements XXXX, fourth delivered with and were solid the coverage quarter

In basis, increasing acute sequential reported a discrete in fourth LTACH coverage rehab general inpatient quarter. our and fact, all quarter-over-quarter the on segments

which in health first of volume portfolio, in cases, of and, excluding these as operators. value in of volumes see Prospect trends prove continue represent Steward our across large communities. to increasing the year-over-year respective their grew some our outpaced facilities XX% during the enduring growth and their quarter XXXX, portfolio, line Behavioral with hospitals, And public

hospitals, noting seen LTACHs declining are payments. just care acute last X.X% part that these CMS generally inpatient ensuring our rehab operators of the have facilities coverage result diversification ongoing of therefore, portfolio May, While as that and volumes of year-over-year additional rent worth expiration for a it is include and/or larger waiver represent and

longer property U.K. benefit the will disclosure coverages inpatient but acuity year-over-year. and individual for rates, increasing operating higher will from with Continental LTACH strong of Europe, profit forward, begin In no and provide Going report in to continue growth combine Leading emission. type. to operators to instead volumes a most reimbursement overall them rehab operators coverages we post-acute

Circle extend positioned in care U.K. remains volume acuity steady growth the XXXX. well private is patient health to increasing and market expected with that through

financial insurance strong With self-pay the maintained. expect of Circle health the in that and growth private steady performance and delivered to has sustained be U.K. performance coverage

within number mental on health capitalize continues priority U.K. As independent health the of care increased in the largest beds the for to behavioral a services U.K. by provider demand

improving coverage incremental They ensure MEDIAN, largely improving along cost-effective rates, focus stable trends, occupancy, quality in from strong with favorable levels occupancy care. remain are driving focused seeing reimbursement efficient and and steadily cost on areas improvements these inflation are with has reimbursement of and company, parent Together, and earnings. management impacts COVID-XX the recovered operations German the moderating pandemic control. its [indiscernible] to on

past margins them maintain MEDIAN's years operating the that expect we resilient stability. proven to and several have over

quarter While Initial Swiss network pressures, Medical's in inflationary temporary its headwinds abating. profitability integrated the was are from to these marginally impacted XXXX. pioneering indicate that already first related and results by care investments

Innovation on the open Janelle Hub, track addition, of XXXX. in half Swiss second Medical's to which construction XXXX, In in began remains

our to portfolio. Turning U.S.

rates Excluding portfolio are IRFs, or diversified of inpatient generally Reimbursement hospitals, we're of rehabilitation and general environment. inflationary universally Prospect, health facilities, acute accelerating in increasing commendable controlling a Steward our and facilities. and seeing payroll job costs doing almost are across admissions operators this

operated investment new leading we firm involving A of in announcement formed common with by hospitals for the a of Lake the highlight Utah major JV, quarter the spirits. Salt was area the our City

to in and We persist term. an these pleased are performance XX% approximate to retain interest trends expect long the over facilities strong

Xx. IRF Xx. in adversely consolidated excess Ernest's its impacted developments, are is performing stable EBITDARM Xx coverage Ernest facilities total recent Ernest volume performance coverage well their of headwinds coverage Ernest earlier. mentioned same-store reported it by Health at X approaching IRF, above reported LTACH with on the I was excluding with

LTACH by California as their XX-year is in lease reminder, the and remaining to part than New XX% Ernest IRFs. X than Prime comprised Shifting Prime, a Prime for investment important our our transaction, less and MPT sale to new an covered of the agreed of hospitals. and Jersey rent more master As

purchase new owned to these option estate a price for purchase volumes remaining minimum of labor includes to a has and hospitals. normalization Prime of of buy hospitals $XXX which master costs, for increasing report the MPT real led for EBITDARM lease The They million. improved

At our LifePoint quarter the hospitals, volumes we rebound saw have the momentum following in XXXX. of sustained fourth nice

improvements facilities they X more which in monthly LifePoint including MPT-owned years. meaningful several LifePoint the encouraging an result, have delivered over than the in EBITDARM months, highest EBITDARM a last deliver March As

optimistic remain market has success. LifePoint's and received that at recently position Konami, Privilion further by the will been Memorial dedicated Pennsylvania, for cardiovascular well community, we surgical and and it future very that care

have and volumes Our increased LifePoint inpatient in programs volumes programs. intensive steadily outpatient declines offsetting from behavioral seasonal partial facilities hospitalization

acute At increases turn facilities double-digit substantial driven nearly by and to contract volume full X.Xx, SionHealth, general labor. in in improvement coverage reductions a reported year-over-year

that However, like waivers XXXX. Ernest, the been adversely expired impacted in has by LTACH performance

XX, Prospect trailing $X of XX March for interest ended the end Finally, of paid for end after rent on Prospect approximately XXXX. X.Xx the rent million coverage basis and the increased EBITDARM on reported the during portfolio quarter. December February. approximately to a Xx has of and cash months California of its through quarter the XX-month Coverage further approximately paid California

yet received the not rent and months of for at May. time, However, MPT this has April

and summarize, highly care well, the before are settings. volume continued across operators briefly Kevin, our geographies it the encouraged to to majority I and diversified and To we're we of portfolio in turn seeing perform by trends cost over

As our and core such, the cash the of portfolio. we of flow remain business long-term confident Kevin? our in model pillars potential

James Hanna

and of This Rosa. for of $X.XX the net GAAP you, morning, of normalized reported per first we FFO quarter XXXX. $X.XX a share share per loss Thank

earnings Prospect. to make is our from Steward share. results about of quarter that revenue release, additionally to Steward million cash continue approximately MPT payment in first million as at the and relates noting in Massachusetts it quarter mentioned $XX worth consolidated full As $XX included portfolio, first the partnership It

is has has quarter And to Steward $X prospect million of MPT rent, half roughly $X.X Subsequent million. paid end, share. paid in which

charges conservative MPT potential $XXX pursuant accounting million approximately estate described in to primarily in U.S. recorded reflect remains venture. also related and GAAP These which impairments to Steward pursuing. to non-real quarter, recoveries, noncash estimated were and recorded the in regarding assumptions committed International rules and joint We investments

the joint was quarter, investment operations a of venture case with operations in of appraiser. evaluated independent As assistance the and third-party were the of in investments Steward last the international

XXXX, The of other $XXX of impairment obligations. and in first loan million quarter its Steward the Steward made remainder in the equity charges investment included to full MPT's approximately

international full impaired investment we joint our in the venture. Further,

adjustments other accounting moved It basis of a is recorded no As to related first noting FFO. the to were income normalized quarter. and reminder, these was cash a worth investments previously in couple

the adjusted value priority approximately as book loss securities, the million in based on our we First, recognized million sales our by recent of an the Holdings to fair shares investment such independent term approximately appraisal. $XX million, Further, third-party of downward on $X adjustment negative PHP and an value of as marketable our well most as loan, we EBIT. $X

operations back payments assuming activity, to year. I is the typically influenced to transactions remind that in flow before impact expect the retaining of we weighted the from filing, we be or thought Steve, our on cash flows first over seasonally of quarter to negatively XX-Q XXXX by investors of interest hand operations from One our timing debt, Steward no cash cash half it advance would from

for I overall will strategy. that, discussion our turn Steve? of to Steve With allocation over liquidity it capital a and

R. Hamner

by you, during time, working the financing. and that even billion better plan we last about I'll Kevin. would Ed's late echoing from predicted. earlier sales than that asset generate liquidity all secured which year, of success we At begin described of we XXXX, the is estimated comments Thank we $X

and with successes, of transactions early public well believe $X initial transactions had $X.X capitalization volatile our terms interest will we those Based inside attractive at XX% through XXXX, for target valuations executed securities on particularly a additional were of the halfway or those what rates By billion during we April, imply. billion rates. exceed our and inflation achieved period, of in we And estimate.

does $X.X MPT selling bit debt proceeds net about Going completely sales, reduced with further. has of exiting this accomplished asset billion repurchase our most back proceeds, for on delevering time last not of pursuant operators including $X.X of options recently, that Australia, sale profitable year. financing to million their of a nonrecourse almost by billion hospitals its our the and million from We've $XXX proceeds. to Utah since this of primarily facilities cash $XXX XX% include and back

when price hospitals we fully in slide note, were they the validates XXXX, Utah paid As a for this operated these Steward. transaction by

the We to any future in which in interest, values these participate are retain the XX% pleased increases to assets. us a of provides opportunity

available cash debtor about more in Planned commitment as from uses any $XXX well balances in currently as additional and current Steward up made future we as cash fund that. Ed liquidity liquidity immediately million any $XXX proceeds for flows transactions capacity. have possession include We to and million And the revolver have loan. potential mentioned, through no this for operating than

million, financing million, Sterling or And million funding loan, a GBP that XXX USD to projects XXX and seller XXX sold, approximately another of of about uncertain. may be including X up million the about that that's this is our term in loan. GBP prepayment of to development amount $XXX related Repayment roughly denominated due in actual another late so $XXX sterling-denominated million year commitments,

also our prior assets recently selling filing, success facilities. of of in its in bank and light Steward bankruptcy recognition in amended to we at the valuations deteriorating attractive Partly our situation

financial limits percentage unencumbered One of as the assets amount of unsecured our bank loan covenants debt XX%. of a to

For amount that calculation, is of unencumbered XX%. tenants in leased limited bankruptcy to assets to the

The the -- the test the through June early for financial will limitation Bank else equal, waive Steward quarterly means XX that on this all until assets September covenants quarterly which XX% the in calculation test, XX. to Group remain asset unencumbered next agreed through

leased that Our many XX, Steward. replace are are plan with at the we and operators months expectation our qualified until better hospitals September they Steward currently of will during X to

coveted time Steward bankruptcy remains unencumbered on and at financial to extended, our So waiver the not is that in value-based effect if be its expected even mitigated. asset that

in when $X-plus no and earlier exceeded longer future, financing our $X.X asset given current the expected billion acquisitions sales billion the from facility during transactions need had years, credit priorities Second, the we generated liquidity that executed and large we revolving our already annually. and

to secured are borrowings majority of reduce to low XX% these the basket revolver relatively commitment be reduce we willing offer down our transactions project billion. $X.X future. by were XX%. financings, million the we secured Accordingly, liquidity down And of from secured to $XXX we to sales than rather because the Further, to levels for accordingly, debt expected foreseeable

out, Before we to all going I'll just questions, XXXX point addressed summarize have and maturities. our

We be that's liquidity we mortgage the additional the expect I've the to alluded going XXX transactions considering to. into have XXXX, possible from achieve And and have significant million-pound only to remaining that paid. sterling before that we expect liquidity to

plans and to will reduce Our to increase to remain currently that assets, operator. estate that, over with monetize turn And continue is to and liquidity debt re-tenant hospital I it Steward. real questions, leased

Operator

And Markets. will with come Austin from KeyBanc Wurschmidt Instructions] first the question Capital [Operator

Austin Wurschmidt

Steward wondering from First, all changes expect weekly the case? open or you any there? whether just that just and and receiving are worse still facilities if you're leased just for advisers remain And and to wondering of if the reports flow better will operating cash the Steward's

Edward Aldag

previously closed flow continue ones I facilities operating. the then of on, receive were Steward far do reports they second that And so and Austin, question, prior advisers, have to continue the to be their every So, believe, to cash exceeded projections week. we the than all from other bankruptcy

Austin Wurschmidt

So as rent relative negotiations other I cash at thinking prior in been what's contractual to to you around have rent? negotiations the the backfill forward parties potential these or start Steward's facilities, with moving mean, operations

R. Hamner

been management, of positive localized on in for very revenue Steward, reimbursement. EBITDAR. saying payables, bankruptcy revenue we've a as So are out hospitals, with perspective legacy well filings, which are the X-wall laid around generating the level are many issues cycle the months, The

that pay can is contractual to continue to rent that So we the that hospitals all levels. these at believe say of

of into But get more lot bankruptcy, a to current the scrutiny. obviously the or for. that we that's there's of long-winded with goes to a Now negotiation. call amount way anticipate And agreements that near at across saying there's portfolio continue rent lease the

Austin Wurschmidt

start when to be then worse? whether for these better And for any leases you any rejected or guess, of one just back of could these last line on of time or the reasons any I either for me. get facilities will any sense

R. Hamner

sorry. I'm

again, would line. in the very then was process. regulatory date question I time filings, are target around I the have the start to think bankruptcy some And your agreements strict there that think, in place,

get that are of won't call. many I bankruptcy indication the think on leases. I any have Steward master X don't would But in us because motivation this law into no lawyers we have of either rejecting

Operator

Next question will come of from Bank Joshua Dennerlein America. with

Joshua Dennerlein

financing? provide you to And feel Dip I Just guys DIP curious did financing, looking then the was on PK need over the why documents. the the

in and it's it Just is debt what curious why junior deal? called your then

Edward Aldag

financing the important to is is as we operate reason I exactly do prepared think this my dip to said Josh, that remarks continue the that we very $XX process. hospitals million decided that it's we through as in go the

Joshua Dennerlein

you Were folks would potential the financing be the provide there in other willing no to BK?

Edward Aldag

are get but know, Yes, this going you they absolutely There negotiations other at as into point. of details were. the those lenders we're involved, not to

Joshua Dennerlein

as it then referred correct Okay. junior I financing, BK think term. in And document, to the was it's

does that was debt like Or curious, used? to junior Just term why or other mean claims? that it's

R. Hamner

the because other of you -- receivables. have Well, are security typical liens of is on lenders and there to, waterfall, as collateral there that first the alluded

Joshua Dennerlein

PHP I the Like that drove the have I thought Holdings claim. what potential like fair just but how what's market that? financing in through I about think like driving the I talked you that impact you does us I'm write-down, am monetization, guys always most adjustment? -- And if the walk could was potentially past? Any Okay. kind was wrong, secure on -- the of

R. Hamner

things including like based a quarter, of discount and every rate independent as do we appraisals of rates. inputs, financing on, lot It's evaluations

private a on really it's basis. So

other not a it estimate, based expectation to market happens what It's necessarily -- fair PHP on as our like value any on and Kevin we security is when. think, our basis. described, clearly or I an of that

Joshua Dennerlein

Okay.

moves just flows something interest was So investments? it answered that based there it, like the cash the rates? changed was that more just you of Or way the like on in with underlying

Edward Aldag

Yes.

biggest the well, adjustments as alluded rate. and discount but I as capital was think to, the the rate, Steve working some piece, discount mainly

Operator

come [Operator with Instructions] Our next Vikram from question Mizuho. Malhotra will

George Hoglund

This prospects? comment we on about for How rent there? Can recovery Hoglund should you the on Vikram. just is think George

R. Hamner

recovery, is what... rent that The

George Hoglund

rent recovery. Yes,

R. Hamner

recovery... rent the Well, Yes.

Rosa Hooper

Rent recovery.

I think he rent said recovery.

R. Hamner

payment collected that or pointed Well, came And March. Rosa we've through March not to April the now, the California we collected out, have March subsequent May. rent as assets on as of but

Rosa Hooper

expected a payments the cash There's which of a in the point, months, are prospects. coming cost for will be slug

would anticipate at we So time. getting them the additional proceeds -- having

George Hoglund

Okay. That's the April you you target of like does and helpful. dispositions color your that just pricing can $X mentioned likely How And to what provide in you number look on you're more liquidity. today? And expectations? are the did exceed this the billion of

R. Hamner

assets of cap That So additional mentioned. that it's size quarter. we or we I quality negotiating which we a what to with calculated that achieve we frankly, financings that rate think plus time, remain and that or of mentioned we under we and on at others. this, have we were minus, question good to in indicative to cap the expect sold, mid-Xs for closed those when adjusted respect one and we Prime rate. And remain and we very last the negotiations geography is assets sales where we the a said mid-Xs going and the

George Hoglund

If pipeline can do you how more large just would you Like be be? provide would how that the color, super $X the help. And above think billion? much

R. Hamner

XXXX billion. if the our the based breaking those achieved And into exceed the That's the sources. pricing you will up think financing and think of we've it course, and bit, on billion, for attractive be visibility we of results, pricing, you're heard little but correctly, already $X why said buyers we and ultimately remainder XX% we Well, similar market $X at through of us. potential into a I we'll

Operator

Carroll question from with Next Michael will come RBC.

Michael Carroll

And know how I QAF come April does mean, paid they payments Steve are is Rosa, what circle that I that haven't guess on prospect their situation? said Rosa, I situation. the concerning QAF it month fix back do in. rents? those payments to that going and to in? wanted and And May come you I

R. Hamner

how I'll had question, concerning her some been Rosa have course, address mentioned, your always operators a time. of So as the this is, with our prospects let minute. And We've basis in QAF a for California the on cup issue. cash

with it will having cash other in of the cash country, to and they the then with aside the come ultimately from not in disposing And the in through Prospect, California. pressures remain significant pay respect when confident that on. that, you again, specifically issue, combine regions is have in But QAF We unexpected. to paid quarter, the rent that delays been

Edward Aldag

improve. And to California continues coverage

Rosa Hooper

the sum. the and flow. this really with end a It QAF cash payments come in end should by or -- are May, month Those should their at due of help substantial them into it's

Edward Aldag

Work was almost in X/X. February

Michael Carroll

are payments I'm cash that -- they pressures these falling assuming missing the do and guess, making weighing these tighter, the Rhode are payables maybe rent may they does what another they missing they Pennsylvania that their assets Yes. that rent kind payments, position issues? I of have cash and their as vendor other have? Connecticut and May solve are they Island down. Or April that in behind If are

R. Hamner

our at the we a that. level. improving very to have And think a operating Again, coverage. rent, get on we expect they're positively don't as and mentioned, I comment again,

convert Now QAF. and cash, with that you comes to that's the what we to have in expect coverage

Michael Carroll

lot I'm the by saying I August, for stuff beginning some you mean August, the of done assuming done underway? have expecting Okay. remarks Steward the get need by the they need just your said I expect of the look Steve, to expect can XX% process get you're And you prepared did what that beginning it BK that of expect because to finally, I about BK would bit a test September for you portion the of occur, at then know a -- talk transitions this already do a to little occur? the transitions covenant to you transitions? in you And to in filing of didn't

hospitals now? process ready I can those is to how put there to Or just on right financials looking people in at right comment much are that starting get are you And the interest bids? now? mean, in

Edward Aldag

it's Mike, down different people. many almost months on road We're going the X now. been for way with

Michael Carroll

your hospitals transitioned? covenant, of the was like percentage Steve, be you then, Steward you of on the to clarify comment that that And Or -- a BK can XX% do kind expect comment?

R. Hamner

Well, predict. won't need to is, the move try I by relationships. relief the equal, we clarify. make trying end I'll relationship hospitals at we number else that to try The I to covenant the from mitigated of from September, if that was point need away into substantially that be all would to new of Steward expect

But Now remember X months. again, think of hospitals on exactly this just that, to hospitals least on start or Ed will X end almost X-month said, of bankruptcy. the between we transition based at marketing now predict date. been with do try we didn't this which They've what for these which period, the and just don't filing

of meaningful that expect moved which expect do of Steward new specifying hospitals before a we But without we end win, to the be go amount away operators September. will do exposure

Operator

will with next Mueller from Mike Your come question JPMorgan.

Michael Mueller

or quick Can have by you Steward a high you I operators, the at whatever? give this or level of the ultimately assets up process, prior you sense ones think Maybe guess couple of other of us portion managed of what transitioned now be end will a question. by here. sold either on following

Edward Aldag

I question, facilities the is, end operated this the of do think it at your understand but by be to transition you of said we Mike, sure, whenever Is the I'm I continue expect not question? to that Steward? completely any

Michael Mueller

other do be what in opposed of rephrase me we'll bankruptcy Let this I guess, process Steward at the it, assets by think your Steward? now as hands operators the other operated of end it. portion being at the side of you of to

Edward Aldag

we're would close to I XXX%. guess,

Michael Mueller

Okay.

-- And do then Connecticut if current there, is the on give us B you assets as and it Haven, Plan what those New guess, that I not I relates news get to recent thoughts sold? Yelle guess can I guess, the if Okay. with

Edward Aldag

Yes.

With Yale that state the now. to just Prospect, ongoing discussions the not and we're on between comment going right

Operator

come will Hughes question with Next from Raymond James. Jonathan

Jonathan Hughes

with properties, and because might is Or Are of there to is is the in scrutiny maybe discussions find increased the health for increasing lead a potential new operators Steward issues care share to or and FTC? from market that market bankruptcy, any Steward regardless operator concerns on it share? preserve new services focusing primary the goal concentration

Edward Aldag

different lot a of markets. It's

this, of So be my a market XXX% think best can't would issue. I accurate require the right there any this that I on moment, but recovery are don't concentration

Jonathan Hughes

was than months my Okay. the which and And after dependent the prior. The the comments your then on maybe mentioned transactions. declared that more declared was month's Prime press consistent question but X on release the it April liquidity after Utah dividend dividend last was is the -- transactions, dividend. regular with second a prior that dividend, that And that dividend was

dividends maybe and in future that and still be status dividend more given amount? the assume the is might to on focus change preserving current then fair Board it Steward's sporadic is also since comfortable with So liquidity,

Edward Aldag

discussed day it which at next as XX, that I our Board our Jonathan, Yes. meeting the be same will believe and is point. May Annual is Meeting,

Operator

Your from Green Pawlowski come with will John next Street. question

John Pawlowski

on on color proceeds Utah any in So helpful. prior imagine it's transaction said are reserves and would is costs first deferred portfolio the to The Can transaction. My $X.X question release of price impacted I billion the the the additional CapEx how that you CapEx? some and press cost be it quantify in reserves. and what and

R. Hamner

fees, follow-up reserves first question. a if cost to cost may of are just brokerage sure reference customary quite the lien reserves typical and Well, that lender require. our and transaction the And not I'm

Edward Aldag

expenses reserve... in those in extraordinary nothing was There

R. Hamner

No. I'm CapEx. by my meant No, what was that's point. sure not

John Pawlowski

get that CapEx headline MPW additional purchase that fund no There's needs to price? to

R. Hamner

absolute the that lease net CapEx. responsible for Spirit This is Common is operator, an

John Pawlowski

Okay.

Steward. question Next on is

MPWs your of payments that lease leases master So given when subordinated rent just Steward Macquarie with either on due or structured? is with the the to from still JV, Steward was Steward JV paying that

Edward Aldag

No.

John Pawlowski

many me. assets Last ABL the with them in bridge as estate conjunction loan real refinancing? or any pledge have so, right question for of you how Steward And your Did collateral against now? leaned if

Edward Aldag

No.

Operator

question-and-answer session. would Aldag conference the remarks. Ed concludes turn ahead. Mr. Please This to any over like for to our closing back I go

Edward Aldag

everyone Thank today. appreciate and you, Chuck, we listening

Drew If please don't questions, quickly can. you hesitate they'll as as have additional and or we call you. your Tim, questions Thank to any responded get to

Operator

Thank conference for The attending now concluded. today's presentation. has you

disconnect. now may You

Medical Properties Trust (MPW) 9 May 242024 Q1 Earnings call transcript