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

May 07, 2010 | About:

Medical Properties Trust Inc. (NYSE:MPW) filed Quarterly Report for the period ended 2010-03-31.

Medical Properties Trust Inc. has a market cap of $733.4 million; its shares were traded at around $9.12 with a P/E ratio of 11.4 and P/S ratio of 5.6. The dividend yield of Medical Properties Trust Inc. stocks is 8.8%. Medical Properties Trust Inc. had an annual average earning growth of 28.1% over the past 5 years.

Highlight of Business Operations:

Property-related expenses in the first quarter of 2010 increased from $0.9 million in 2009 to $1.1 million in 2010. Virtually all of this increase is a result of bad debt expense recognized during the first quarter 2010 related to our leases of six wellness centers. No similar expense was recorded in the 2009 first quarter. Of the property-related expenses in the 2010 and 2009 first quarter, $0.6 million and $0.5 million, respectively, represented utility costs, repair and maintenance expense, legal, and property taxes associated with vacant facilities.

General and administrative expenses in the first quarter of 2010 increased compared to the same period in 2009 by $0.5 million, or 8.8%, from $5.7 million to $6.2 million, reflecting a slight increase in cash compensation in 2010 due to the addition of key employees.

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 of $1.5 million.

During the 2009 first quarter, operating cash flows approximated $18.3 million, which were used to fund primarily all of our dividend of $13.3 million and investing activities of $6.2 million.

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 overallotments, 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 reduce our outstanding balance on our current revolver to $0. We intend to use the remaining net proceeds from the Offering to fund our concurrent cash tender offer (Tender Offer) for any and all of the outstanding 6.125% exchangeable senior notes due 2011 at a price of 103% of the principal amount (or approximately $142 million) plus accrued and unpaid interest. The Tender Offer is scheduled to expire at midnight on May 7, 2010.

Finally, in April 2010, we sold the real estate of our Centinela Hospital to Prime for $75 million. Separately, Prime also repaid $40 million in outstanding loans plus accrued interest in April 2010. In addition, Prime paid us $12 million in additional rent and profits interest related to our Shasta property.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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