Market Overview

Medical Properties Trust Announces $400M Transaction with Ernest Health to Add 16 Hospitals to Portfolio; FFO Accretion of 26%


Medical Properties Trust, Inc. (NYSE: MPW) today announced that it has agreed to a series of transactions with Ernest Health, Inc. that will add 16 existing post acute care hospitals to MPT's investment portfolio for approximately $300 million. In addition, the Company will acquire a significant percentage of Ernest Health's operations, in partnership with Ernest Health's management team. This $400 million transaction increases Medical Properties Trust's overall assets by 25 percent, to more than $2.0 billion.

Upon completion of the transactions, which is subject to regulatory and other customary conditions, MPT is expected to have investments in 78 hospital facilities in 24 states, total assets of approximately $2.0 billion and no tenant group that represents more than 20% of its total assets. The transactions are expected to add approximately $0.19 per share in funds from operations in the 12 months following the closing, which is anticipated to occur during the first quarter of 2012. Based on MPT's most recently disclosed expectations of future FFO, the incremental FFO from the Ernest transactions will represent an increase of 26%.

Posted-In: News Guidance M&A


Related Articles (MPW)

View Comments and Join the Discussion!