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Medical Properties Trust divests from five more hospitals for $1 billion

by HealthCare Business News | April 16, 2024
Medical Properties Trust Inc. (MPT), a Birmingham, Alabama-based real estate investment trust, has divested a majority stake in five Utah hospitals.

This transaction, valued at around $1.1 billion in immediate cash proceeds for MPT, is part of a broader strategy to enhance liquidity and strengthen the company's balance sheet. The proceeds are earmarked for debt reduction, including full repayment of a $300 million Australian term loan and borrowings under its revolving credit facility, along with other corporate purposes.

The announcement follows last week's news that MPT had concluded the sale of five medical facilities located in California and New Jersey to Prime Healthcare for $350 million.

Edward K. Aldag Jr., chairman, president, and CEO of MPT, remarked on the validation of MPT’s hospital real estate underwriting approach by sophisticated market participants. He expressed confidence in surpassing the initial 2024 liquidity target of $2 billion, citing favorable valuations and ongoing negotiations for additional transactions.

The transaction also included securing new non-recourse financing by the venture, adding $190 million to MPT’s share of proceeds, further supporting the underwritten asset values.

Since its establishment in 2003, MPT has grown to become one of the world’s largest owners of hospital real estate, with 439 facilities and about 43,000 licensed beds across nine countries.

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