MPT

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 11:00 a.m. ET Senior Vice President - Charles R. Lambert Chairman, President, and Chief Executive Officer - Edward K. Aldag Jr. Executive Vice President and Chief Financial Officer - R. Steven Hamner Senior Vice President, Controller, and Chief Accounting Officer - James Kevin Hanna Senior Vice President of Operations and Secretary - Rosa H. Williams Managing Director, Management and Underwriting - Jason Frey Operator: Hello, everyone. Thank you for joining us and welcome to Medical Properties Trust Second Quarter 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Charles R. Lambert, senior vice president. Charles, please go ahead. Charles R. Lambert: Good morning. Welcome to the MPT conference call to discuss our second quarter 2026 financial results. With me today are Edward K. Aldag, Jr, Chairman, President, and Chief Executive Officer of the company; R. Steven Hamner, Executive Vice President and chief financial officer James Kevin Hanna, Senior Vice President, Controller, and Chief Accounting Officer; Rosa H. Williams, senior vice president of Operations and Secretary; and Jason Frey, managing director, Management and Underwriting. Our press release was distributed this morning and furnished on Form 8-K with the Securities and Exchange Commission. If you did not receive a copy, it is available on our website at mpt.com in the investor relations section. Additionally, we are hosting a live webcast of today's call, which you can access in that same section. During the course of this call, we will make projections and certain other statements that may be considered forward looking statements within the meaning of the Private Securities Litigation Reform Act of 2 thousand. These forward looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause our financial results and future events to differ materially from those expressed in or underlying such forward looking statements. We refer you to the company's reports filed with the Securities and Exchange Commission for a discussion of the factors that could cause the company's actual results or future events to differ materially from those expressed in this call. The information being provided today is as of this date only and except as required by the federal securities laws, the company does not undertake a duty to update any such information. In addition, during the course of the conference call, we will describe certain non GAAP financial measures which should be considered in addition to and not in lieu of comparable GAAP financial measures. Please note that in our press release, medical properties Trust has reconciled all non GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg G requirements. You can also refer to our website at mpt.com for the most directly comparable financial results and related reconciliations. I will now turn the call over to our Chief Executive Officer, Ed Aldag. Edward K. Aldag Jr.: Thank you, Charles, and thanks to all of you for joining us this morning on our second quarter 2026 earnings call. Before I begin today, we would like to extend our thoughts and prayers to the people of Columbia after this morning's earthquake. Now let me begin with the most significant update Today, we announced a comprehensive refinancing transaction that extends $2.4 billion of debt maturities to 2032, significantly reducing near term maturities and positioning us well to pursue a balanced capital allocation strategy moving forward. Steve will discuss this transaction in more detail shortly. Turning to our performance highlights. Total portfolio EBITDARM coverage remained steady. As we continue to see robust demand for rehabilitation services around the world, our post acute operators again delivered the strongest growth in the portfolio, with EBITDARM increasing more than $70 million year over year. Led by a 24% increase in Median, and a 13% increase in Ernest Health. General Acute performance was stable behavioral health remains a source Of Pressure On The Overall Portfolio. Despite The Increased importance and demand for these services we continue to see around the world. In the UK market especially, revenue continues to be impacted by funding pressures at the NHS, as the new administration in the UK works to rebalance its entire budget. I spent last week in the UK spending time with many of our operators there. I walked away from those meetings impressed with the level of activity across the facilities confident in the opportunities for high quality general acute providers, and encouraged that the behavioral market remains a compelling long term investment. As most of you know, our Swiss joint venture went public this summer; it is now listed on the 6 exchange. Infracore continues to see attractive opportunities for growth, and the company was able to access capital for further growth. We retain a significant ownership position in Infracore, and remain bullish on Switzerland and look forward to seeing our overall investments grow there. Finally, to further strengthen our-- we consolidated all of our ScionHealth general acute hospitals and LifePoint leases into 1 LifePoint master lease. As a part of this conversion, Scion transitioned certain MPT owned acute hospitals to LifePoint, and we are pleased with the resulting single lease relationship with a mature operator with an enhanced credit profile. With the strong trends we continue to see across our diverse portfolio of operators, the proving enduring value of our assets, and a plan to clear the runway of debt maturities until late 2028 we are well positioned to achieve our goal of over $1 billion annualized cash rent by the end of the year. And to create value for shareholders moving forward. Rosa? Rosa H. Williams: Thank you, Edward. As usual, I will walk through the trends we are seeing, the continued progress of our recently transitioned operators, and the steps tenants are taking to enhance performance. Across our core portfolio, performance trends remain broadly stable. General acute operators still comprise the majority of the portfolio, and reported aggregate EBITDARM coverage of 2.8x during the quarter. As Ed mentioned, our post acute portfolio delivered another really strong performance with coverage of 2.4x. Finally, our behavioral portfolio coverage was down slightly to 1.4x reflecting the discrete headwinds in The UK and US markets that we have discussed all year. For individual operator coverage details, we would encourage you to review the supplemental published on the investor relations page of our website. Our international portfolio continues to provide meaningful stability. Swiss Medical Network, Median, and Circle Continue to produce strong stable earnings executing on their respective growth and innovation strategies. Swiss Medical Network is advancing its integrated care strategy with revenue growth supported by recent acquisitions and an ongoing shift toward higher value outpatient and primary care. In Germany, median continues to build on its momentum, with year-to-date EBITDA running ahead of budget. At Priory, proactive measures are being taken to address challenges related to the previously discussed shift in NHS referral patterns. With the ongoing budget constraints in the UK, management is focused on implementing even more disciplined cost control measures and optimizing services to better align with demand. Turning to the US, Prospect continues to produce strong results. NOR began paying 50% of contractual rent in June. Operationally, NOR delivered encouraging momentum with admissions, emergency department visits, and surgeries all higher year over year reflecting volume recovery across the platform. The emergency department project at Culver City is progressing, and remains scheduled to open in the fourth quarter of 2027. HSA, which operates hospitals in Florida, Louisiana, and Texas, saw mixed results in the second quarter due to certain disruptions that caused lower cash collections and volume declines in some markets. First, the MEDITECH EMR conversion caused a temporary inability to bill and collect cash for a period during the month of May. Resulting in lower collections in May and June. Additionally, prior to the conversion, HSA transitioned its revenue cycle management to an outsourced firm. And because HSA operates in markets where they serve an above average number of indigent patients, reliance on supplemental payments from federal and state is necessary. These payments are not always predictable, can therefore be a strain on cash flows. That was evident when the Florida supplemental funding that was due in April was delayed until August. Which caused further short term pressure on HSA's liquidity. With the MEDITECH conversion largely behind them, HSA has brought revenue cycle management back in house, and expects to improve revenue cycle and operational efficiency in the coming months. While cash collections are still lagging, HSA has received significant payments from the Florida supplemental funding program in August. Enabling them to begin repayment of the working capital advances we made during the quarter. While trailing 12 month EBITDARM to cash rent coverage of 2.0x, we remain cautiously optimistic about the trajectory of HSA and will continue carefully monitoring their operations. Our US post acute portfolio remains an area of strength Ernest Health is a standout, and we are excited to see Ernest continue to grow with its acquisition of Reunion Rehabilitation Hospitals adding 7 hospitals with closing expected this summer. Finally, we remain confident in the long term earnings power of these assets and in our path toward normalized rent across the portfolio. With that, I will turn it over to Kevin. James Kevin Hanna: Thank you, Rosa. Today, we reported normalized FFO of $0.15 per share for the second quarter of 2026, which was in line with our expectations as last quarter's results were $0.14 per share and we expected the rent from HSA and NOR to continue to increase in accordance with their lease agreements. As a reminder HSA is currently paying 75% of their contractual rent, increases to 100% in mid-September, while NOR started paying rent in mid June equal to 50% of contractual rent, increases to 100% in mid-December. As Ed noted in his remarks, we have combined the LifePoint behavioral and all but 1 Scion post-acute property into a combined single master lease. Cash rent from this combined lease will be basically the same as it was previously. G&A expense for the quarter was higher year over year, primarily driven by stock compensation expense due to the change in fair market value of certain cash-settled stock awards and the increase in depreciation expense of the corporate headquarters building that was placed into service during the first quarter of this year. Finally, during the quarter, we impaired approximately $17 million in working capital loans primarily related to the 2 Steward replacement tenants in the Midwest. Steve? R. Steven Hamner: Thank you, Kevin. As Ed mentioned, this morning, we announced a 2 step process to fully satisfy our 2026 and 2027 debt maturities. Totaling about $2.7 billion along with an additional approximately $1.2 billion of longer dated unsecured notes. Step 1, which we expect to complete later today, is the issuance of $2.4 billion in secured notes. The proceeds of which will be used as follows. First, to fully redeem the upcoming maturity of our €500 million in unsecured note, and approximately $738 million or about 53% of our unsecured notes due in 2027. We will also exchange at a discount another approximately $1.2 billion of longer dated unsecured notes reducing gross debt by about $123 million. Step 2, which we have commenced an to complete in coming weeks, will repay the remainder of the 2027 unsecured notes, complete a new multiyear bank revolver, and repay our $200 million term loan due in June 2027. MPT will then have no debt maturing in 2026 or 2027. In fact, our sole maturity over the next 3 years will be a modest balance of about $600 million of notes due in June 2028. Moreover, with $1.1 billion of expected liquidity, based on recent and expected near term asset sales, we will have substantial flexibility for further delevering in the near term. Also importantly, our single bond maintenance covenants that requires 150% of unencumbered assets over unsecured debt, be substantially improved. Up to almost 300% depending on how we deploy our liquidity. The new notes have a coupon of 9.25% a 5.5-year term that becomes prepayable after 2 years, and other customary ratchet provisions, all of which we describe and qualify by reference to the descriptions and documents included in a to be filed current report on Form 8-K. I will make a few additional observations about our overall financial position. Once again, and in several ways, sophisticated third party investors have affirmed that market values of our hospital assets exceed their book values. First, some of the most sophisticated global fixed income investors underwrote the value of the assets that secure the $2.4 billion of notes we just discussed. Moreover, recent transactions including the IPO of InfraCore in Switzerland, have established market values of our hospital assets above our original investments. In another pending sale that will close imminently, we will receive about $172 million in after debt cash proceeds, reflecting a 60% increase over our original investment and an IRR of about 34%. In addition to these recently completed transactions, we are in discussions with potential buyers of additional assets that if completed, will generate hundreds of millions of dollars more in sale proceeds at pricing well above our original investments. there is no assurance that these transactions will be completed but the fact that sophisticated parties are even initially offering this level of pricing is encouraging validation of our overall asset values. Upon completion of these refinancings, we will retain additional collateral value and flexibility for future delevering. Just to reiterate, no debt maturities until June 2028, and then a modest $600 million. Up to $1.1 billion in liquidity. Dependent only on completion of certain asset sales that are already in process of being negotiated. And substantial cushion in our UAUD bond covenant that opens up opportunities for certain additional delevering strategies. In closing, our business model remains attractive and growth opportunities continue to present themselves in our markets. With our assets continuing to demonstrate attractive market value, and with significant liquidity on hand, we are well positioned to continue to focus on reducing debt while capitalizing on strategic growth opportunities. Edward K. Aldag Jr.: With that, we will open up the call for questions. Operator? Operator: We will now begin the question and answer session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Mike Mueller with JPMorgan. Mike, please go ahead. Mike Mueller: Yeah. Thanks. Hi. So I guess with the balance of the 2027 notes that you are looking to pay off, is that just going on basically a new credit line that is going to be the near term mechanism? And what is gonna be the rate on that facility? R. Steven Hamner: No. that is not the expectation, Mike. In fact, phase 2 or step 2, as we call it, will include as I noted, the repayment of those 27 notes. But it will not be just based on using the credit line. Mike Mueller: Okay. Will it be all from assets? R. Steven Hamner: No. We have a number of options that we have always had. Including asset sales. Including liquidity that we have, and including additional secured debt opportunities. Mike Mueller: Got it. Okay. Okay. Thank you. Operator: Your next question comes from the line of John Kielakowski with Wells Fargo. John, your line is open. Please go ahead. John Kielakowski: Thank you. Hi. Good morning. Just to clarify, you know, as I am looking at the press release, we talked through in the opening remarks about 2026 and 2027, but this also talks about refinancing the 2027 through 2021 or excuse me, 2031 notes Could you just kind of clarify that timing and when this goes into place and then the pro forma cash interest from this move? Operator: John, we are having a lot of trouble getting your question here. Edward K. Aldag Jr.: John, maybe you can try speaking up a little bit. Yours was very, very soft. John Kielakowski: Apologies. Can you hear me better now? Yes. Thank you. Yeah. Alright. Thank you. Yeah. I am the opening remarks focused mostly on the 26 and 27 maturities, but I am also seeing commentary in the press release about the 2027 through 2031 notes. Could you just talk through the timing and clarify, is all of that being refinanced now as well? And the pro forma cash interest number following this move? R. Steven Hamner: No. It comes in 2 steps. Step 1 is the $2.4 billion that we announced this morning. That will fully prepay/repay the 2026s. And cash and exchange combined of about $740 million of the 2027s. And then step 2, we expect to complete in the coming weeks, will, satisfy the remainder of the 2027s. And in addition, as we mentioned during step 1, we will also exchange about a billion and a half of the longer dated notes. John Kielakowski: Okay. Very helpful. Thank you. Operator: Your next question comes from the line of Michael Carroll with RBC Capital Markets. Michael, please go ahead. Michael Albert Carroll: Thanks. Can you guys provide some more color on the HSA situation? I mean, how confident are you that Conifer can push cash collections and where they need to be? I mean, I believe you indicated last quarter that they were up to 82% from 78%. It needs to be in the 90 plus percent range, and it sounds like it dipped in May and June just due to the EMR transfers that you are talking about. Edward K. Aldag Jr.: Yeah. Mike, it is been a lot slower than we hoped it would be. Still in the eighties. The if you look from an operational-- the good news from an operational standpoint, as Rosa pointed out, they are generating 2 times coverage. But that does not do you any good if you are not collecting the cash. And then you had the late payments from Florida. If you add all of that in together, we are cautiously optimistic. But they still have to improve the cash collections greatly. Michael Albert Carroll: So what gives you confidence that they are able to do that? And did they already receive the Florida DPP payments, and that is how the $20 million got paid back? And can you talk about how and when you expect the next $20 million will be paid? And it was unclear in the press release. I mean, is 10 million of that just gonna be outstanding or will that be repaid soon, too? Edward K. Aldag Jr.: So they have received to approximately half of the DPP money from Florida. The other could come in as early as today, but certainly in the next week or so. And with that money, they will pay back the additional $20 million and then they will have the additional 10 million or the remaining $10 million repaid sometime in the next quarter. Michael Albert Carroll: Okay. And then just lastly from me, I know NOR was supposed to start paying rent in June Did they pay that rent? And are they current right now too? Edward K. Aldag Jr.: Yes. Yes, Prospect did pay the rent, and Prospect is doing well. Remember, those are 2 different entities, Prospect and HSA. Prospect's operations are doing very well. Operator: Your next question comes from the line of Michael Diana with Maxim Group. Your line is open. Please go ahead. Michael Diana: Thank you. I wanted to ask that asset sales. Could you just read obviously a lot of moving parts. Could you review for us the asset sales you know you are going to make, The asset sales that you are probably going to make, And the calculus that you are using when you are determining whether or not to sell an asset? So what we know has-- yeah. Is that it, Mike? No, that is it. Thanks. R. Steven Hamner: Okay. So what we know, what has happened and is happening, in fact, as we speak, we mentioned the InfraCore transaction, generates about $140 million, has already generated about $140 million in proceeds for us. And I will just point out again, I will reiterate that pricing tested by the market was at a higher valuation than we carried the assets on our books for. Secondly, today, a transaction is closing that we are regrettably not able to identify, but will be within a matter of hours, but we can tell you a transaction is closing that will generate after debt payment about $172 million to us today. that is the transaction that I spoke of that once again validates across the portfolio. The value of our assets exceeding sometimes by a significant amount our original investment. In this case, an aggregate 60% plus gain on our original recording of that investment, representing about a 34% IRR. In addition, we are in various stages of negotiation for a handful of other significantly valued assets. Each of which if they were to trade at the values that we are negotiating, would again represent significant gains over not just net book depreciated value, but our original investment. We think that could be realistically over the next few weeks another $200 million to $400 million in cash proceeds. Possibly, it could be more than that, but we are relatively confident that we will be in that additional 200 to $400 million proceeds level. Okay. Okay. And, well, obviously, that is very good news on sales value versus book value. Michael Diana: What impact will this have on the income statement? Broadly? R. Steven Hamner: So, obviously, a great question. And it depends on a number of things that are kind of, you know, self-evident to people in this call. Obviously, the gain on sale. In other words, we are earning rent typically on these assets based on our original investment. To the extent we can sell for more than that, and take those proceeds and apply them to, for example, 9.25% interest that we just issued this morning, 1 would think that has a very positive perhaps you know, even accretive impact on normalized FFO. Obviously, timing of completion of the secured issuance, we announced this morning. Timing in terms of step 2 the refinance of the bank facility and completion of pay down of the 2027s. Execution and timing of asset sales, and then further delevering by use of these asset sale proceeds will all have an impact on go forward normalized FFO. As will continued ramp up of the HSA and NOR relationships. So as those become more definitive, we will be able to better predict and return to providing run rate guidance. in future quarters. Michael Diana: Okay. Great. Thanks very much. Operator: Your next question comes from the line of Farrell Granath from Bank of America. Farrell, your line is open. Please go ahead. Farrell Granath: Thank you very much. Good afternoon. Or morning. My question is on any collateral restrictions. I know you had mentioned some of that in your opening remarks, but hoping that you just dive a little bit deeper on how you are thinking about any of your credit facilities' maintenance covenants. R. Steven Hamner: As well as what would step 2 potentially influence on some of those unencumbered headroom that you would still have available? So both Step 1 and step 2 have, impacts on the UAUD. That really, Farrell, is the only maintenance covenant we have. And while it will not go away because that is a bond covenant, the cushion, the headroom, it brings I mentioned earlier, the minimum, the requirement is 1.5x. And we have been in that range, 1.55 to 1.60 over the last several quarters. And we expect that with completion of step 1, again, which will happen very likely today, that will go all the way up to an actual of almost 200%, and completion of step 2, will drive it up again as much as to 300%. So what that does is give us additional flexibility to use different strategies and give us the opportunity to further delever which is the goal The goal is not simply to continue to extend maturities, but to actually reduce leverage. And these transactions we are announcing this morning, take us a very long step toward being able to do that more aggressively Farrell Granath: Okay. Thank you. And my second question is on-- I know the Prime Minister of The UK has made some commentary about potentially having social care for all adults over there. I am just curious in your conversations and that you are mentioning in your recent travels. Has that been coming up as a concern or actually a tailwind for the companies that are over there. Edward K. Aldag Jr.: Yeah. So social care is very different than health care. Social care is primarily focused on the end of life and dementia type items and other items that are not included in the current NHS services. Operator: Your next question comes from the line of Vikram Malhotra with Mizuho. Vikram, your line is open. Please go ahead. Vikram Malhotra: Good morning. Thank you so much. Sorry if I joined late and missed this. Do you mind just clarifying for any additional, like, the 27 and any future you know, maturities or other payments to what the, you know, the thinking is post this transaction. R. Steven Hamner: And, I am sorry, Vikram. The question was about 20 sevens. Vikram Malhotra: Yeah. Like, just after you have done this transaction, you pushed out the you pushed out the maturities. Right? Like you said, there is nothing you know, now through 26, 27. So I meant post-2027. Just maybe give us the latest thinking on you know, plans that you might sort of raise additional capital to take care of additional future maturities? R. Steven Hamner: Well, the primary immediate liquidity comes from the asset sales. That even assuming which were not we are not disclosing a new credit facility yet, but even assuming a meaningful decline in our current $1.3 billion revolver. We expect to reduce the out year, and I think this is your question, your longer dated Yes. Yeah. With the immediate reduction would come from asset sale. Proceeds. Yeah. I guess I was I should have expand. I meant like you said, look. We wanna reduce actual overall leverage in the view that cash flow may take a bit longer to ramp up. From all the transitions or just overall, say, there is another tenant issue that you have not called out, but say there is something. I am just trying to figure out, like, over the next 2 years, how do you, like, in absolute terms, get net debt to EBITDA down from here, if there is any other plan. And maybe that works into a broader question. As you were contemplating this, any latest thoughts on I guess, I should not call it simplifying, but maybe shrinking the overall portfolio. You know, you have got US. You have got global. Any thoughts on, like, taking pieces from here and doing a bigger, broader strategic transaction? Well, as we have been saying now, really going on couple of years, we have a number of alternatives. Those really have not changed. With our announcement that this morning. We retain all of them. And they include maybe, you know, some things that you may be alluding to. There are a couple of ways to easily raise liquidity for debt reduction. 1 I have described, you know, selling assets. We are doing that. Another is selling equity. Well, we do not think it is the right time to sell equity with the stock where it is. We think the valuation is significantly greater than that and we think that is proved almost every time we sell an asset. That our assets are significantly more valuable than what is reflected on our balance sheet. So but it would be wrong not to acknowledge that is 1 way to reduce debt. But we have cleared the runway to continue to be able to improve the operations, continue to see the asset values grow, and continue to pay down debt in ways that are not so grossly dilutive to selling stock when you think it is not the right time to sell stock. Vikram Malhotra: that is fair. And then just lastly, I can clarify. So with the sales you are contemplating, like, how should we think about where multiples are or cap rates are today? Like, what is the broad range, and should we think about, like, a core asset in The US versus maybe 1 that is more struggling? Maybe just give us some sense of how the private markets valuing these assets relative to public. Edward K. Aldag Jr.: Vikram, I think that it goes across the board. But if you look at what Steve mentioned earlier in the call, every single 1 of the assets that we are in current negotiations with or have actually closed. We were not out marketing them. People came to us is a high demand for assets. Both in The US and in Europe. Thank you. Analyst: Your next question comes from the line of Michael Carroll with RBC Capital Markets. Michael Albert Carroll: Yes. Thanks. Steve, where is MPT at on its secured debt ratio? And correct me if I am wrong here, but I think that covenant is about 40%. And it sounds like with the Phase 1 that kind of puts you pretty close to that ratio. So does MPT have capacity to issue additional secured debt via phase 2? R. Steven Hamner: We do. But you are absolutely right, Mike. It does drive us up from where we were this morning, which was around 25% to much closer to that 40% level. Michael Albert Carroll: So then can you so I guess, these additional asset sales give you more capacity to make more room on that secured debt ratio? I mean, I am calculating that you are pretty tight where you do not really have much more secured debt. So is there color on how you can regain additional secured debt via this phase 2, path? R. Steven Hamner: So just by definition, you are right. Asset sales would provide more headroom for that. You use the proceeds to reduce debt. Would provide more headroom for that. Michael Albert Carroll: Okay. And then just lastly, can you talk about an update related to Norwood? And then what is MPT's cost basis in that asset? I know there is some filing saying that it is about $350 million. I was under the impression it was just above $200 million. Is that just additional dollars that MPT had to put into that asset to kind of weatherize it, which pushed that cost basis up into that mid-$300 million range? Edward K. Aldag Jr.: Mike, as you know, there is a lot of stuff going on with Norwood and various discussions with the state. We have made public statements. Those are listed on our website, and that is where we will leave it right now. Okay. Great. Thanks. Operator: There are no further questions at this time. I will now turn the call back to Edward Aldag. CEO, for closing remarks. Edward K. Aldag Jr.: Thank you very much for everyone's interest today. If you have any additional questions, please do not hesitate to reach out to us. Thank you very much. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Medical Properties Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Medical Properties Trust wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 17, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Medical Properties Trust (MPT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Medical Properties Trust, Inc.? Here are five stocks we like better. Medical Properties Trust launched a two-step refinancing plan to address approximately $2.7 billion of 2026–2027 maturities, including $2.4 billion of secured notes due in 2032. Management expects to eliminate maturities in 2026 and 2027, leaving roughly $600 million due in 2028. The company is using asset sales to support deleveraging and liquidity, including approximately $140 million from its Infracore listing and $172 million from an imminent transaction. Additional potential sales could generate another $200 million to $400 million. Second-quarter normalized FFO rose to $0.15 per share from $0.14 in the prior quarter, while hospital portfolio performance was broadly stable. Post-acute operators showed strong growth, but behavioral health and certain tenants—including Priory and HSA—continued to face operating and funding pressures. Medical Properties Stock is a Post-Pandemic Healthcare Recovery Play Medical Properties Trust (NYSE:MPT) said it has launched a two-step refinancing plan intended to address its 2026 and 2027 debt maturities, while reporting second-quarter normalized funds from operations of $0.15 per share and describing stable performance across much of its hospital portfolio. Chairman, President and Chief Executive Officer Edward K. Aldag Jr. said the company announced a comprehensive refinancing transaction that would extend $2.4 billion of debt maturities to 2032. The plan is designed to reduce near-term maturities and support what Aldag called a more balanced capital-allocation strategy. → MarketBeat Week in Review – 08/03 - 08/07 “With the strong trends we continue to see across our diverse portfolio of operators,” Aldag said, “and a plan to clear the runway of debt maturities until late 2028, we are well positioned” to pursue more than $1 billion of annualized cash rent by year-end. Executive Vice President and Chief Financial Officer Steven Hamner said the refinancing consists of two steps intended to fully satisfy about $2.7 billion of 2026 and 2027 debt maturities, along with addressing approximately $1.2 billion of longer-dated unsecured notes. → Quantum Earnings Week: Winners and Losers Are Finally Emerging The first step, expected to close later on the day of the call, involves issuing $2.4 billion of secured notes with a 9.25% coupon and a five-and-a-half-year term. The notes become prepayable after two years, Hamner said. Proceeds are expected to redeem the company’s upcoming €500 million unsecured note maturity and repay or exchange approximately $738 million, or about 53%, of unsecured notes due in 2027. The company also plans to exchange, at a discount, about $1.2 billion of longer-dated unsecured notes, reducing gross debt by about $123 million. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War The second step is expected to be completed in the coming weeks and includes repayment of the remaining 2027 unsecured notes, a new multiyear bank revolver and repayment of a $200 million term loan due in June 2027. Hamner said Medical Properties Trust expects to have no maturities in 2026 or 2027 once the process is completed. Its only maturity over the following three years would be roughly $600 million of notes due in June 2028. Hamner said the company expects $1.1 billion of liquidity based on recent and anticipated asset sales. He also said the refinancing could increase the company’s unencumbered-assets-to-unsecured-debt covenant cushion to nearly 300%, depending on how liquidity is deployed, from a required minimum of 150%. The company highlighted recent and potential asset transactions as part of its effort to reduce leverage. Hamner said the public listing of Swiss joint venture Infracore generated about $140 million in proceeds for Medical Properties Trust. He said the market valuation established through the transaction exceeded the carrying value of the related assets. Hamner also said an unidentified transaction expected to close imminently would provide approximately $172 million of after-debt cash proceeds. He said the sale represented a gain of more than 60% over the company’s original investment and an internal rate of return of approximately 34%. Additionally, Medical Properties Trust said it was negotiating sales of several other assets that could potentially generate another $200 million to $400 million of proceeds over the next few weeks, though Hamner said there was no assurance the transactions would be completed. During the question-and-answer session, Hamner said asset-sale proceeds and debt repayment would create additional capacity under the company’s secured-debt ratio. He said the first-stage secured issuance would move the ratio from approximately 25% closer to a 40% limit. Aldag said total portfolio EBITDARM coverage remained steady, with post-acute operators producing the strongest growth. He said post-acute EBITDARM rose by more than $70 million year over year, led by a 24% increase at MEDIAN and a 13% increase at Ernest Health. Rosa Williams, senior vice president of operations and secretary, said general acute operators reported aggregate EBITDARM coverage of 2.8 times during the quarter. Post-acute coverage was 2.4 times, while behavioral health coverage declined slightly to 1.4 times amid pressures in the U.K. and U.S. markets. Williams said U.K. behavioral-health operator Priory is implementing tighter cost controls and optimizing services as National Health Service budget constraints and changing referral patterns affect operations. Aldag said he remained encouraged by activity at U.K. facilities and sees long-term opportunity in behavioral health despite current funding pressures. In the U.S., Williams said Noor began paying 50% of contractual rent in June and produced higher year-over-year admissions, emergency department visits and surgeries. Noor’s rent is scheduled to rise to 100% of contractual rent in mid-December. Hospital Systems of America, or HSA, experienced operational disruption during a MEDITECH electronic medical record conversion and after outsourcing revenue-cycle management, Williams said. Delayed supplemental funding in Florida also pressured liquidity. HSA has since brought revenue-cycle management back in-house and received significant Florida supplemental funding in August, allowing it to begin repaying working-capital advances from Medical Properties Trust. Aldag said HSA’s cash collections remained in the 80% range and need to improve, although he noted that the operator is generating roughly two times EBITDARM-to-cash-rent coverage. He said HSA had received about half of its expected Florida supplemental funding and planned to use the remaining payment to repay an additional $20 million of advances, with a remaining $10 million expected to be repaid in the next quarter. Senior Vice President, Controller and Chief Accounting Officer Kevin Hanna said normalized FFO was $0.15 per share in the second quarter, compared with $0.14 per share in the prior quarter. He said the result was in line with management’s expectations as rent payments from HSA and Noor increased under their lease agreements. Hanna said HSA was paying 75% of contractual rent and is scheduled to move to 100% in mid-September. The company also consolidated LifePoint, LifePoint Behavioral Health and all but one Scion post-acute property into a single master lease, with cash rent expected to remain essentially unchanged. General and administrative expense increased year over year due primarily to stock-compensation expense and depreciation associated with the company’s corporate headquarters building. Medical Properties Trust also recorded about $17 million of impairments on working-capital loans, primarily related to two Steward replacement tenants in the Midwest. Medical Properties Trust, Inc (NYSE: MPT) is a real estate investment trust (REIT) that acquires, owns and finances hospitals and other healthcare facilities. Founded in 2003 by Edward K. Aldag Jr., the company’s business model centers on providing real estate capital to healthcare operators through long-term leases, sale-leaseback transactions, build-to-suit developments and mortgage financing. By specializing in healthcare real estate, MPT aims to deliver steady rental income and asset-based returns while enabling operators to access capital for clinical operations and growth. The company’s portfolio primarily comprises acute care hospitals, inpatient rehabilitation hospitals, long-term acute care facilities, behavioral health centers and other specialty hospitals. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Medical Properties Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Announced Agreement for Private Refinancing Transaction that Significantly Extends Maturities on $2.4 Billion of Debt BIRMINGHAM, Ala., August 10, 2026--(BUSINESS WIRE)--Medical Properties Trust, Inc. (the "Company" or "MPT") (NYSE: MPT) today announced financial and operating results for the second quarter ended June 30, 2026, as well as certain events occurring subsequent to quarter end. Announced a private offering of approximately $2.4 billion of secured notes, the proceeds of which will be used to repay existing debt, including the 2026 notes as well as approximately 50% of the 2027 notes, expected to close imminently; Agreed to a sale of certain assets that it expects will result in approximately $172 million of cash proceeds in the third quarter; Received approximately $100 million in cash proceeds in connection with the initial public offering of Infracore SA ("Infracore"), in which MPT holds an equity investment, with an expected additional $35 million later in the third quarter; Net loss of ($0.01) and Normalized Funds from Operations ("NFFO") of $0.15 for the 2026 second quarter, all on a per share basis; Paid a regular quarterly dividend of $0.09 per share in July 2026. Edward K. Aldag, Jr., Chairman, President and Chief Executive Officer, said, "We continue to take decisive steps to strengthen our balance sheet through our refinancing transactions and strategic asset sales. With strong performance trends across our diverse portfolio of global operators and our transition tenants ramping rent payments as expected, we will continue to evaluate opportunities to fortify our balance sheet while pursuing opportunistic growth." Included in the financial tables accompanying this press release is information about the Company’s assets and liabilities, operating results, and reconciliations of net (loss) income to NFFO, including per share amounts, all on a basis comparable to 2025 results. PORTFOLIO UPDATE MPT has total assets of approximately $15 billion, including $8.8 billion of general acute facilities, $2.4 billion of behavioral health facilities and $1.7 billion of post-acute facilities. As of June 30, 2026, MPT’s portfolio included 373 properties and approximately 38,000 licensed beds leased to or mortgaged by 51 hospital operating companies across the United States, as well as in the United Kingdom, Switzerland, Germany, Spain, Finland, Colombia, Italy and Portugal. During the quarter, MPT entered into an arrangement with Scion, Lifepoint and Lifepoint Behavioral, under which the Lifepoint and Lifepoint Behavioral leases were combined into a single amended master lease, providing increased diversification and an enhanced credit profile. Prior to this arrangement, Scion transitioned certain of its acute hospitals to Lifepoint, two of which are MPT-owned facilities. Additionally, MPT exchanged three Scion properties for one Lifepoint property, generating an approximate $7 million gain. As a result of these agreements, MPT’s remaining Scion exposure is limited to one facility. During the quarter, the Company advanced an additional $50 million for working capital purposes to HSA, of which $20 million has been repaid and an additional $20 million is expected to be repaid in August. FINANCIAL UPDATE On August 10, 2026, the Company announced a privately negotiated $2.4 billion refinancing transaction, including discount captured of approximately $123 million, significantly reducing debt maturing through 2028, and demonstrating the Company’s commitment to continued debt reduction. OPERATING RESULTS Net loss for the second quarter ended June 30, 2026 was ($3 million) (($0.01) per share), compared to a net loss of ($98 million) (($0.16) per share) in the year earlier period. NFFO for the second quarter ended June 30, 2026 was $92 million ($0.15 per share), compared to $81 million ($0.14 per share) in the year earlier period. CONFERENCE CALL AND WEBCAST The Company has scheduled a conference call and webcast for August 10, 2026, at 11:00 a.m. Eastern Time to present the Company’s financial and operating results for the quarter ended June 30, 2026. The dial-in numbers for the conference call are 833-461-5787 (Toll-Free) and 585-542-9983, and the Meeting ID is 594327200 to join the conference. The conference call and webcast replay will also be available via webcast in the Investor Relations section of the Company’s website, www.mpt.com. The webcast replay will be available for one year. The Company’s supplemental information package for the current period will also be available on the Company’s website in the Investor Relations section. The Company uses, and intends to continue to use, the Investor Relations page of its website, which can be found at www.mpt.com, as a means of disclosing material nonpublic information and complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the Investor Relations page, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document. About Medical Properties Trust, Inc. Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world’s largest owners of hospital real estate with 373 facilities and approximately 38,000 licensed beds in nine countries and across three continents as of June 30, 2026. MPT’s financing model facilitates acquisitions and recapitalizations, and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. For more information, please visit the Company’s website at www.mpt.com. Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can generally be identified by the use of forward-looking words such as "may", "will", "would", "could", "expect", "intend", "plan", "estimate", "target", "anticipate", "believe", "objectives", "outlook", "guidance" or other similar words, and include statements regarding our strategies, objectives, prospects, asset sales and the expected proceeds and gains therefrom, refinancings (including the Notes offering and the timing of, expected proceeds and allocation of proceeds from, such refinancings), tenant arrangements (including master leases and lease restructurings, and the expected timing, anticipated rent and financial impact thereof), among others. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results or future events to differ materially from those expressed in or underlying such forward-looking statements, including, but not limited to: (i) the risk that projected rents may be lower than anticipated or realized later than expected; (ii) the risk that the timing, outcome and terms of the causes of action of Prospect Medical Holdings, Inc. ("Prospect"), which serve as collateral for debtor-in-possession and other fundings provided by MPT that remain outstanding, and of other recoveries in respect of the Company’s remaining Prospect investment, will not be consistent with those anticipated by the Company; (iii) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate acquisitions and investments; (iv) the risk that previously announced or contemplated property sales, loan repayments, and other capital recycling transactions do not occur as anticipated or at all; (v) the risk that MPT is not able to attain its leverage, liquidity and cost of capital objectives within a reasonable time period or at all; (vi) MPT’s ability to obtain or modify the terms of debt financing on attractive terms or at all, as a result of changes in interest rates and other factors, which may adversely impact our ability to pay down, refinance, restructure or extend our indebtedness, including extending our 2026 credit facility, as it becomes due, or pursue acquisition and development opportunities; (vii) the ability of our tenants, operators and borrowers to satisfy their obligations under their respective contractual arrangements with us; (viii) the ability of our tenants and operators to operate profitably and generate positive cash flow, remain solvent, comply with applicable laws, rules and regulations in the operation of our properties, to deliver high-quality services, to attract and retain qualified personnel and to attract patients; (ix) the risk that we are unable to monetize our investments in certain tenants at full value within a reasonable time period or at all; (x) the risk that the operations of our tenants will be negatively impacted by changes to Medicaid funding introduced by the OBBBA; (xi) the risks and uncertainties of litigation or other regulatory proceedings; (xii) the impact of any governmental actions affecting our properties. The risks described above are not exhaustive and additional factors could adversely affect our business and financial performance, including the risk factors discussed under the section captioned "Risk Factors" in our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, and as may be updated in our other filings with the SEC. Forward-looking statements are inherently uncertain and actual performance or outcomes may vary materially from any forward-looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward-looking statements as predictions of future events. We disclaim any responsibility to update such forward-looking statements, which speak only as of the date on which they were made. View source version on businesswire.com: https://www.businesswire.com/news/home/20260807796381/en/ Contacts Charles LambertSenior Vice President of Finance & TreasurerMedical Properties Trust, Inc.(205) [email protected]

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Medical Properties Trust (MPT) has put fresh numbers on the table with its second quarter 2026 earnings, combining a small funds from operations shortfall with slightly stronger revenue and ongoing refinancing, asset sale, and dividend activity. See our latest analysis for Medical Properties Trust. At a share price of US$4.70, Medical Properties Trust has seen a 1‑month share price return of 4.21%. However, the share price is down 8.02% over 3 months. The 1‑year total shareholder return of 25.28% contrasts with a 5‑year total shareholder return that is down 64.13%, which hints that recent refinancing moves, asset sales and the latest earnings miss are being weighed against an earlier period of much weaker performance. If you are assessing how this kind of turnaround story compares with other areas of the market, it can help to see where capital is flowing into structural growth themes such as AI infrastructure. To widen your watchlist, take a look at 56 AI infrastructure stocks Medical Properties Trust has already staged a sharp rebound from its lows, yet the balance sheet work, asset sales and earnings reset are still playing out. Is most of the rerating already in the price, or not? The most followed narrative values Medical Properties Trust at $5.79 per share, above the latest close of $4.70. That gap rests on some punchy profitability and multiple assumptions. Read the complete narrative. Read the complete narrative. Want to see what underpins that higher fair value for Medical Properties Trust? The narrative leans on a turnaround from losses, firmer margins, and a future earnings multiple rarely attached to a hospital REIT. Curious which specific revenue and profit assumptions have to line up to support that price? Result: Fair Value of $5.79 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the bullish Medical Properties Trust narrative still leans on cleaner tenant credit and contained refinancing costs, and setbacks on either front could quickly challenge it. Find out about the key risks to this Medical Properties Trust narrative. With Medical Properties Trust, does the mix of concern and optimism in this article match your own read of the risks and rewards? To stress test your view and see how other investors weigh both sides of the story, take a closer look at the 3 key rewards and 2 important warning signs. If you want a fuller picture of where to put fresh capital to work, use the Simply Wall St Screener to spot stocks with different strengths and risk profiles. Target steady cash generators by checking companies in the solid balance sheet and fundamentals stocks screener (48 results) that emphasise resilience and financial discipline. Hunt for pricing gaps with the 52 high quality undervalued stocks and see which stocks the numbers suggest may offer more value than the market currently implies. Prioritise income potential by reviewing the 8 dividend fortresses and focus on businesses offering higher yields with the backing of stronger fundamentals. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MPT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

National Bankshares (NKSH) came out with quarterly earnings of $0.79 per share, missing the Zacks Consensus Estimate of $0.8 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.25%. A quarter ago, it was expected that this holding company for the National Bank of Blacksburg would post earnings of $0.65 per share when it actually produced earnings of $0.78, delivering a surprise of +20%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. National Bankshares, which belongs to the Zacks Banks - Southeast industry, posted revenues of $15.7 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.29%. This compares to year-ago revenues of $13.27 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. National Bankshares shares have added about 7.3% since the beginning of the year versus the S&P 500's gain of 9.6%. While National Bankshares has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for National Bankshares was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.83 on $15.98 million in revenues for the coming quarter and $3.25 on $62.76 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Medical Properties (MPT), another stock in the broader Zacks Finance sector, has yet to report results for the quarter ended June 2026. This health care real estate investment trust is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +14.3%. The consensus EPS estimate for the quarter has been revised 6.3% lower over the last 30 days to the current level. Medical Properties' revenues are expected to be $258.57 million, up 7.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report National Bankshares, Inc. (NKSH) : Free Stock Analysis Report Medical Properties Trust, Inc. (MPT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Portfolio health: Total portfolio EBITDARM coverage was steady at 2.5x with standout post-acute gains (MEDIAN, Ernest, Vibra), and management reiterated confidence in reaching more than $1 billion in annualized cash rent by year-end via rent ramps — but behavioral health, particularly the U.K. Priory operations, remains pressured by NHS reimbursement cuts. Financials and balance sheet: Q1 normalized FFO was $0.14 per share (boosted by one-time items including a $44M U.K. tax benefit), while near-term debt maturities include €500M due Oct 2026, a $200M term loan due Jun 2027 and $1.4B due Oct 2027 as management targets modest, accretive deals. Tenant and restructuring updates: HSA has improved collections to roughly 82% with Conifer onboarding and a MEDITECH conversion underway (goal: mid-90s collections), Prospect completed hospital sales and MPT's DIP loan was about $60M secured primarily by litigation proceeds expected to cover repayment. Interested in Medical Properties Trust, Inc.? Here are five stocks we like better. Medical Properties Stock is a Post-Pandemic Healthcare Recovery Play Medical Properties Trust (NYSE:MPT) executives said the company’s hospital portfolio produced steady coverage levels in the first quarter of 2026, with strength in post-acute operators offsetting continued pressure in behavioral health, particularly in the U.K. Management also reiterated confidence in reaching a year-end goal of more than $1 billion in annualized cash rent, supported by rent ramps tied to recently transitioned tenants. Chairman, President and CEO Edward K. Aldag Jr. said total portfolio EBITDARM coverage was steady year-over-year at 2.5x. He highlighted “standout results” in post-acute, where portfolio EBITDARM increased by about $80 million year-over-year, led by a 24% increase at MEDIAN, a 16% increase at Ernest Health, and a 61% increase at Vibra following a new 20-year master lease signed in late 2025. → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? Aldag said general acute performance was “largely stable,” with EBITDARM increasing nearly $40 million year-over-year. He added that behavioral health continues to face “two entirely separate challenges” in the U.S. and U.K., despite strong demand. In the U.S., he pointed to staffing shortages, while in the U.K. he cited demand being dampened by National Health Service (NHS) funding pressures. On rent collections and transitioned tenants, Aldag said tenants across Florida, Texas, Arizona, and Louisiana were “fully current on rent due through April.” He noted that Quorum and HonorHealth reached fully stabilized rents in the third quarter of 2025, while HSA ramped to 75% in March with MPT still expecting “100% of monthly payments from HSA beginning in October.” Aldag said management remains confident in reaching “over $1 billion in annualized cash rent by year-end.” → Verizon’s Signal Strength: The Turnaround Call Is Loud and Clear Senior Vice President of Operations and Secretary Rosa Williams said international assets have been a “meaningful stabilizing force.” In Germany, she said MEDIAN delivered one of its best operating periods, supported by high occupancy, improving reimbursements, and sustained demand across orthopedic and other rehabilitation services. She also said Swiss Medical Network expanded through strategic acquisitions and outpatient growth focused on integrated care models. In the U.K., Williams said Circle Health performed well in general acute care, benefiting from private-pay utilization and higher-acuity case mix. However, she said Priory continues to see record demand for inpatient mental health services while facing reimbursement reductions from the NHS. Williams said Priory is responding with “service line optimization, cost management, and selective repositioning of certain facilities.” She said MPT and Priory view the situation as temporary, though “the timing and degree of any recovery is unpredictable.” → Alphabet’s Earnings Didn’t Just Beat—They Changed the Story Williams also said MPT revised allocated central costs used for Priory’s facility-level reporting, which reduced trailing 12-month coverage by 40 basis points for Priory and by 20 basis points for the behavioral health property type, with no impact on consolidated portfolio coverage. Williams said HSA management is focused on liquidity and collections. She noted that in April, HSA “engaged and fully onboarded Conifer to manage its revenue cycle operations,” and that HSA is moving to its own MEDITECH electronic health record system. She said HSA recently obtained equipment financing and has begun ordering replacement equipment. Williams also referenced contingent approval by the Centers for Medicare & Medicaid Services (CMS) for Florida’s Medicaid Directed Payment Program, which HSA expects will significantly improve its net benefit versus 2025 and strengthen liquidity. Williams outlined a slate of capital projects at HSA, including a new parking deck, structural and electrical recertifications, wound care improvements, elevator upgrades, roof restorations, and equipment replacements. On NOR, Williams said operations were stable in the first few months, with EBITDARM already exceeding its full contractual rent obligation that takes effect at year-end. She said inpatient admissions were ahead of the prior year and that NOR is adding service lines and restarting construction of a new emergency department at Culver City. The new ED, she said, is expected to be completed in summer 2027. Across other U.S. operators, Williams said Ernest Health remained a post-acute standout and plans to convert all six MPT-owned LTAC facilities to inpatient rehabilitation facilities by the end of 2026. She said Vibra’s EBITDARM coverage improved to 3x following balance sheet and portfolio actions, with California assets performing particularly well. She added that LifePoint’s performance moderated from 2024 but remained supported by admissions and acuity. Senior Vice President, Controller and Chief Accounting Officer Kevin Hanna reported normalized FFO of $0.14 per share for the first quarter, “in line with our expectations.” He said results were approximately $0.03 to $0.04 per share higher than they otherwise would have been due to one-time cash rent receipts previously disclosed. Hanna also said G&A expense fell year-over-year largely due to lower stock compensation expense tied to changes in fair market value of certain cash-settled awards in 2024 and 2025. Hanna added that MPT moved seven additional legal entities into its U.K. restructure effective in the first quarter, which resulted in a one-time $44 million tax benefit. Executive Vice President and CFO Steven Hamner said the balance sheet was “relatively unchanged” from the fourth quarter. He identified the nearest maturity as €500 million of unsecured notes due in October 2026 with a 0.99% coupon. He also cited a $200 million term loan maturing in June 2027 (as well as the revolver, subject to an extension right) and $1.4 billion of unsecured notes maturing in October 2027. Hamner said the company continues to plan around “ample security value and indenture flexibility” to maximize deleveraging and interest coverage as revenue grows, and reiterated that near-term acquisitions are expected to be “modest, strategic, and accretive.” During the quarter, Hamner said MPT completed a previously disclosed €23 million hospital acquisition in Germany and sold “two small hospitals” in the U.S. He added that cash rent collections from the hospitals re-tenanted in September 2024 continued to be paid under the contractual ramp, except for small Ohio and Pennsylvania facilities previously discussed. Based on April cash rent, he said annualized rent for the re-tenanted facilities (net of assets sold) represented about 74% of the contractual cash rent required under the prior master lease at the time of the September 2024 transition, rising to an expected 98% once HSA reaches fully stabilized cash rent in the fourth quarter of 2026. The remaining 2% relates generally to the Ohio and Pennsylvania facilities. Hamner said MPT received no rent from those tenants in the first quarter and that it is “increasingly unlikely” they will return to profitability in the near term, in part because regulators have not granted approvals to reopen. As a result, he said MPT recognized an impairment of its loan collateral related to the two facilities. Hamner said Prospect completed sales of its remaining hospitals and continues to collect receivables, with proceeds expected to help repay MPT’s debtor-in-possession (DIP) loan. He said MPT’s DIP loan balance was approximately $60 million at quarter-end and is secured primarily by litigation claim proceeds, which as of March 31 were estimated to “substantially exceed” MPT’s DIP loan commitment. Hamner said the DIP loan accrues interest at “all-in rates approximating 16%,” though MPT will recognize income only as received. During the Q&A, Hamner confirmed to JPMorgan analyst Michael Mueller that the previously discussed $160 million target tied to the Steward pool remains the reference point for the 74% and 98% cash collection percentages. On refinancing, Hamner said the company was not in a position to predict coupons, while citing recent secured lending data points including a roughly 5%+ 10-year coupon on German portfolio financing about a year ago and secured senior notes trading in the 6% to 7% range, while emphasizing he was not predicting those levels for future refinancing. RBC Capital Markets analyst Michael Carroll asked about HSA’s financial position. Aldag said HSA’s EBITDARM performance remained “exceptionally well,” generating about 3x coverage on a current cash rent basis, but said cash collections still need improvement. Aldag said HSA’s collections improved from about 78% to about 82%, with a goal of reaching the 90s. He also said MPT expects HSA to use some DIP funding to repay MPT’s asset-based lending facility and said HSA is pursuing a permanent ABL to replace MPT’s facility. Asked about Priory’s coverage outlook, Hamner said management is “hopeful that we’re near the bottom” at 1.6x trailing 12-month EBITDARM coverage, while noting there is “no assurance” and no ability to predict timing or pace of any NHS reimbursement recovery. Aldag characterized the situation as largely political and said it “could be fixed overnight,” while not suggesting that it will be. Wells Fargo analyst John Kilichowski asked about impacts from the “one big beautiful bill.” Aldag said, broadly, operators do not believe it will have a negative effect overall, and he said HCA does not expect a significant negative effect on any of its facilities. Kilichowski also asked about tenant lending; Hamner said working capital lending in the quarter was limited, including a sub-$1 million loan to the small Pennsylvania tenant, about $13 million funded under a secured loan for HSA’s MEDITECH conversion, and about $12 million funded under a second secured loan for capitation liabilities at Prospect’s California hospitals after bankruptcy. Bank of America’s Farrell Granath asked about dispositions including Waterbury. Hamner said the “broader Waterbury transaction was completed in the quarter,” with the estate continuing to collect receivables for several months and those proceeds expected to repay the DIP loan. On future dispositions, Aldag said MPT does not have a list of properties being actively marketed aside from “a few remaining Steward closed facilities.” Medical Properties Trust, Inc (NYSE: MPT) is a real estate investment trust (REIT) that acquires, owns and finances hospitals and other healthcare facilities. Founded in 2003 by Edward K. Aldag Jr., the company’s business model centers on providing real estate capital to healthcare operators through long-term leases, sale-leaseback transactions, build-to-suit developments and mortgage financing. By specializing in healthcare real estate, MPT aims to deliver steady rental income and asset-based returns while enabling operators to access capital for clinical operations and growth. The company’s portfolio primarily comprises acute care hospitals, inpatient rehabilitation hospitals, long-term acute care facilities, behavioral health centers and other specialty hospitals. The article "Medical Properties Trust Q1 Earnings Call Highlights" was originally published by MarketBeat.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Medical Properties Trust (MPT) is back on investor radars after its Q1 2026 update, which combined asset sales, a new European acquisition, and clearer rent collection progress across key hospital properties. See our latest analysis for Medical Properties Trust. The Q1 2026 update comes after a mixed share price run, with a 6.7% 1 month share price return but a 2.8% decline year to date, while the 1 year total shareholder return of 3.1% sits against a much weaker 5 year total shareholder return of 64.7%. If you are looking beyond hospital REITs, this could be a good moment to broaden your search with 33 healthcare AI stocks. With the shares around US$4.94, a value score of 5, an indicated 30% intrinsic discount and a 17% gap to the average analyst target, you now have to ask: is there genuine upside here, or is the market already pricing in any future growth? At a last close of $4.94 against a narrative fair value of $5.17, the current pricing sits slightly below what the model suggests. This puts the focus firmly on whether the underlying assumptions hold up. Read the complete narrative. The most followed narrative leans on a detailed path for revenue, margins and earnings to improve over several years. These are all discounted back using a 12.19% rate and paired with a richer future earnings multiple. Curious which profit and cash flow steps have to line up to justify that fair value and close the gap to today’s price? The full narrative sets out those numbers clearly. Result: Fair Value of $5.17 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you also need to factor in tenant concentration and higher refinancing costs, which could pressure rent collections, asset values and dividend decisions in the future. Find out about the key risks to this Medical Properties Trust narrative. With both risks and rewards on the table, the real question is how you see the balance today. Take a closer look at the facts and decide what matters most to your thesis by reviewing the 3 key rewards and 2 important warning signs If MPT has your attention, do not stop there; widening your watchlist with fresh ideas can help you spot opportunities you might otherwise miss. Target higher income potential by checking out 12 dividend fortresses that focus on yields backed by meaningful cash flows. Zero in on quality at a discount with the screener containing 25 high quality undiscovered gems before they show up on everyone else’s radar. Prioritise resilience in tougher markets by scanning the 74 resilient stocks with low risk scores that score well on stability and downside protection. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MPT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]