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Medical Properties Trust Inc. Reports Operating Results (10-Q)

August 06, 2010 | About:
TOM SLEE

10qk

18 followers
Medical Properties Trust Inc. (MPW) filed Quarterly Report for the period ended 2010-06-30.

Medical Properties Trust Inc. has a market cap of $1.12 billion; its shares were traded at around $10.06 with a P/E ratio of 12.8 and P/S ratio of 8.6. The dividend yield of Medical Properties Trust Inc. stocks is 8%. Medical Properties Trust Inc. had an annual average earning growth of 28.1% over the past 5 years.MPW is in the portfolios of John Keeley of Keeley Fund Management, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

General and administrative expenses in the second quarter of 2010 increased compared to the same period in 2009 by $3.7 million, or 63.2%, from $5.8 million to $9.5 million. The majority of this increase relates to executive severance of $2.8 million recorded during the second quarter of 2010 as a result of the resignation of an executive officer. In addition, we incurred $0.6 million in legal and other closing costs related to the consummated acquisition in June 2010.

General and administrative expenses in the first two quarters of 2010 and 2009 totaled $15.6 million and $11.5 million, respectively, an increase of 36.2%. In the second quarter of 2010, compensation expense was higher due to executive severance of $2.8 million. In addition, we incurred $0.6 million in legal and other closing costs related to the consummated acquisition in June 2010.

In April 2010, we completed a public offering (the Offering) of 26 million shares of common stock at $9.75 per share. Including the underwriters purchase of 3.9 million additional shares to cover over-allotments, net proceeds from this offering, after underwriters discounts and commissions, were $279.1 million. We have used the net proceeds from the Offering to pay off our $30 million term loan that was due this year and to fund our Tender Offer for 84% of the outstanding 6.125% exchangeable senior notes due 2011 at a price of 103% of the principal amount plus accrued and unpaid interest (or $123.2 million).

In May 2010, we entered into a new $450 million secured credit facility with a syndicate of banks, and the proceeds of which along with the Offering proceeds were used to repay in full all outstanding obligations under the old $220 million credit facility. The new facility includes a $300 million three-year term revolving facility and $150 million six-year term loan. We may increase the revolving facility up to $375 million through an accordion feature through November 2011, and in July 2010, we received a $30 million binding commitment from an additional bank participant, increasing our total availability to $330 million.

During the second quarter 2010, we entered into an interest rate swap to fix $65 million of our $125 million senior notes, starting July 31, 2011 (date on which the interest rate is scheduled to turn variable) through maturity date, at a rate of 5.507%. We also entered into an interest rate swap to fix $60 million of our senior notes starting October 31, 2011 (date on which the related interest rate is scheduled to turn variable) through the maturity date at a rate of 5.675%. We are currently paying a weighted average rate of 7.70% on those notes, so we expect to save $2.5 million annually on interest expense once the swaps become effective in July and October 2011.

During the six months ended June 30, 2009, operating cash flows were $29.2 million, which, along with borrowings from our revolving credit facility, were used to fund our dividends of $29.4 million and investing activities of $4.4 million. In January 2009, we completed a public offering of 12.0 million shares of our common stock at $5.40 per share. Including the underwriters purchase of 1.3 million additional shares to cover over-allotments, net proceeds from this offering, after underwriting discount and commissions and fees, were $67.9 million. The net proceeds of this offering were generally used to repay borrowings outstanding under our revolving credit facilities.

Read the The complete Report

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