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SEC Filings, Earing Reports, Press Releases
Medical Properties Trust Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 10, 2011 04:30PM
Medical Properties Trust Inc. (MPW) filed Quarterly Report for the period ended 2011-03-31.
Highlight of Business Operations:
Acquisition expenses increased from $0.1 million in the first quarter of 2010 to $2.0 million in 2011 due to increased acquisition activity and consummated deals. We restarted our acquisition program in the 2010 second quarter after strategically putting it on hold during the worst parts of the financial crisis.
Interest expense for the quarters ended March 31, 2011 and 2010 totaled $8.1 million and $9.5 million, respectively. This
During the 2011 first quarter, operating cash flows, which primarily consists of rent and interest from mortgage and working capital loans, approximated $19.3 million, which, along with cash on-hand and draws on our revolvers, were principally used to fund our dividend of $22.4 million and investing activities of $183.0 million.
In April 2011, our operating partnership and a wholly owned subsidiary of our operating partnership closed on a private offering of $450 million unsecured senior notes. These notes mature in 2021 and the interest rate is fixed at 6.875% per year. Contemporaneously with the closing of the notes, we repaid and terminated our $150 million term loan facility ($142.4 million of which was outstanding at March 31, 2011) and our $9 million collateralized term loan facility ($8.4 million outstanding of March 31, 2011). In connection with the notes offering, we amended our existing credit agreement, which now provides for a $330 million unsecured revolving credit facility that matures in October 2015. We paid down in full the revolving credit facilitys outstanding balance with the proceeds from the notes offering. We will use the remaining proceeds from the offering (approximately $210 million) for general business purposes, which may include investment opportunities and debt reduction.
During the 2010 first quarter, operating cash flows, which primarily consists of rent and interest from mortgage and working capital loans, approximated $11.1 million, which, along with cash on-hand and proceeds from the sale of stock under our at-the-market equity offering program, were principally used to fund our dividend of $16.1 million and investing activities. During the first quarter of 2010, we sold 0.9 million shares of our common stock under our at-the-market equity offering program, at an average price of $10.77 per share, for total proceeds, net of a 2% sales commission, of $9.6 million.
Short-term Liquidity Requirements: At May 10, 2011, our availability under our amended revolving credit facility plus cash on-hand approximated $450 million. We have only nominal principal payments due and no significant maturities in 2011. We believe that the liquidity available to us, along with our current monthly cash receipts from rent and loan interest, is sufficient to provide the resources necessary for operations, debt and interest obligations, our firm commitments, distributions in compliance with REIT requirements during 2011 and to fund our current investment strategies for the next twelve months. In addition, we have an at-the-market offering in place under which we may sell up to $50 million in shares (of which $10 million has been sold to-date) which may be used for general corporate purposes as needed.
Stocks Discussed: MPW,