Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 04, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MPW | |
Entity Registrant Name | MEDICAL PROPERTIES TRUST, INC. | |
Entity Central Index Key | 0001287865 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 535,996,738 | |
Title of 12(b) Security | Common stock, par value $0.001 per share, of Medical Properties Trust, Inc. | |
Security Exchange Name | NYSE | |
Entity Shell Company | false | |
Entity File Number | 001-32559 | |
Entity Tax Identification Number | 20-0191742 | |
Entity Address, Address Line One | 1000 URBAN CENTER DRIVE | |
Entity Address, Address Line Two | SUITE 501 | |
Entity Address, City or Town | BIRMINGHAM | |
Entity Address, State or Province | AL | |
Entity Address, Postal Zip Code | 35242 | |
City Area Code | 205 | |
Local Phone Number | 969-3755 | |
Entity Incorporation, State or Country Code | MD | |
Document Quarterly Report | true | |
Document Transition Report | false | |
MPT Operating Partnership, L.P. [Member] | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MPT OPERATING PARTNERSHIP, L.P. | |
Entity Central Index Key | 0001524607 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 333-177186 | |
Entity Tax Identification Number | 20-0242069 | |
Entity Address, Address Line One | 1000 URBAN CENTER DRIVE | |
Entity Address, Address Line Two | SUITE 501 | |
Entity Address, City or Town | BIRMINGHAM | |
Entity Address, State or Province | AL | |
Entity Address, Postal Zip Code | 35242 | |
City Area Code | 205 | |
Local Phone Number | 969-3755 | |
Entity Incorporation, State or Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Real estate assets | ||
Land, buildings and improvements, intangible lease assets, and other | $ 11,335,005 | $ 8,102,754 |
Investment in financing leases | 2,089,219 | 2,060,302 |
Mortgage loans | 602,479 | 1,275,022 |
Gross investment in real estate assets | 14,026,703 | 11,438,078 |
Accumulated depreciation and amortization | (754,560) | (570,042) |
Net investment in real estate assets | 13,272,143 | 10,868,036 |
Cash and cash equivalents | 183,794 | 1,462,286 |
Interest and rent receivables | 48,476 | 31,357 |
Straight-line rent receivables | 430,811 | 334,231 |
Equity investments | 864,944 | 926,990 |
Other loans | 910,467 | 544,832 |
Other assets | 267,780 | 299,599 |
Total Assets | 15,978,415 | 14,467,331 |
Liabilities | ||
Debt, net | 8,190,669 | 7,023,679 |
Accounts payable and accrued expenses | 431,180 | 291,489 |
Deferred revenue | 17,296 | 16,098 |
Obligations to tenants and other lease liabilities | 126,393 | 107,911 |
Total Liabilities | 8,765,538 | 7,439,177 |
Equity / Capital | ||
Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstanding | ||
Common stock, $0.001 par value. Authorized 750,000 shares; issued and outstanding — 535,574 shares at September 30, 2020 and 517,522 shares at December 31, 2019 | 536 | 518 |
Limited Partners: | ||
Additional paid-in capital | 7,337,155 | 7,008,199 |
Retained (deficit) earnings | (33,619) | 83,012 |
Accumulated other comprehensive loss | (95,654) | (62,905) |
Treasury shares, at cost | (777) | (777) |
Total Medical Properties Trust, Inc. Stockholders' Equity (MPT Operating Partnership, L.P. capital) | 7,207,641 | 7,028,047 |
Non-controlling interests | 5,236 | 107 |
Total Equity / Capital | 7,212,877 | 7,028,154 |
Total Liabilities and Equity / Capital | 15,978,415 | 14,467,331 |
MPT Operating Partnership, L.P. [Member] | ||
Real estate assets | ||
Land, buildings and improvements, intangible lease assets, and other | 11,335,005 | 8,102,754 |
Investment in financing leases | 2,089,219 | 2,060,302 |
Mortgage loans | 602,479 | 1,275,022 |
Gross investment in real estate assets | 14,026,703 | 11,438,078 |
Accumulated depreciation and amortization | (754,560) | (570,042) |
Net investment in real estate assets | 13,272,143 | 10,868,036 |
Cash and cash equivalents | 183,794 | 1,462,286 |
Interest and rent receivables | 48,476 | 31,357 |
Straight-line rent receivables | 430,811 | 334,231 |
Equity investments | 864,944 | 926,990 |
Other loans | 910,467 | 544,832 |
Other assets | 267,780 | 299,599 |
Total Assets | 15,978,415 | 14,467,331 |
Liabilities | ||
Debt, net | 8,190,669 | 7,023,679 |
Accounts payable and accrued expenses | 285,899 | 152,999 |
Deferred revenue | 17,296 | 16,098 |
Obligations to tenants and other lease liabilities | 126,393 | 107,911 |
Payable due to Medical Properties Trust, Inc. | 144,891 | 138,100 |
Total Liabilities | 8,765,148 | 7,438,787 |
Limited Partners: | ||
Accumulated other comprehensive loss | (95,654) | (62,905) |
Total Medical Properties Trust, Inc. Stockholders' Equity (MPT Operating Partnership, L.P. capital) | 7,208,031 | 7,028,437 |
Non-controlling interests | 5,236 | 107 |
Total Equity / Capital | 7,213,267 | 7,028,544 |
Total Liabilities and Equity / Capital | 15,978,415 | 14,467,331 |
General Partner [Member] | MPT Operating Partnership, L.P. [Member] | ||
Equity / Capital | ||
General Partner ? issued and outstanding ? [ ] units at June 30, 2020and 5,176 units at December 31, 2019 | 73,062 | 70,939 |
Limited Partners: | ||
Total Equity / Capital | 73,062 | 70,939 |
Common Units [Member] | MPT Operating Partnership, L.P. [Member] | ||
Limited Partners: | ||
Common units — issued and outstanding — 530,218 units at September 30, 2020 and 512,346 units at December 31, 2019 | $ 7,230,623 | $ 7,020,403 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 535,574,000 | 517,522,000 |
Common stock, shares outstanding | 535,574,000 | 517,522,000 |
General Partner [Member] | MPT Operating Partnership, L.P. [Member] | ||
General partner, units issued | 5,356,000 | 5,176,000 |
General partner, units outstanding | 5,356,000 | 5,176,000 |
Common Units [Member] | MPT Operating Partnership, L.P. [Member] | ||
Limited Partners, units issued | 530,218,000 | 512,346,000 |
Limited Partners, units outstanding | 530,218,000 | 512,346,000 |
LTIP Units [Member] | MPT Operating Partnership, L.P. [Member] | ||
LTIP Units, shares issued | 232,000 | 232,000 |
LTIP Units, shares outstanding | 232,000 | 232,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Net Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | ||||
Rent billed | $ 192,953 | $ 124,361 | $ 538,277 | $ 343,841 |
Straight-line rent | 51,125 | 31,026 | 103,697 | 76,813 |
Income from financing leases | 52,544 | 32,587 | 157,469 | 67,253 |
Interest and other income | 32,836 | 36,782 | 115,989 | 109,852 |
Total revenues | 329,458 | 224,756 | 915,432 | 597,759 |
Expenses | ||||
Interest | 82,263 | 64,519 | 243,538 | 167,396 |
Real estate depreciation and amortization | 69,665 | 40,833 | 192,049 | 108,161 |
Property-related | 5,897 | 4,038 | 19,178 | 15,394 |
General and administrative | 31,718 | 23,286 | 97,121 | 69,009 |
Total expenses | 189,543 | 132,676 | 551,886 | 359,960 |
Other income (expense) | ||||
(Loss) gain on sale of real estate | (927) | 209 | (2,703) | 62 |
Real estate impairment charges | (19,006) | |||
Earnings from equity interests | 5,893 | 3,474 | 15,263 | 11,635 |
Unutilized financing fees | (3,959) | (611) | (4,873) | |
Other (including mark-to-market adjustments on equity securities) | 2,461 | (2,282) | (9,499) | (1,497) |
Total other income (expense) | 7,427 | (2,558) | (16,556) | 5,327 |
Income before income tax | 147,342 | 89,522 | 346,990 | 243,126 |
Income tax (expense) benefit | (15,985) | 745 | (24,824) | 3,352 |
Net income | 131,357 | 90,267 | 322,166 | 246,478 |
Net income attributable to non-controlling interests | (251) | (481) | (600) | (1,432) |
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 131,106 | $ 89,786 | $ 321,566 | $ 245,046 |
Earnings per common share (units) basic and diluted | ||||
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 0.25 | $ 0.20 | $ 0.61 | $ 0.60 |
Weighted average shares (units) outstanding basic | 531,095 | 439,581 | 526,651 | 404,902 |
Weighted average shares (units) outstanding diluted | 532,436 | 440,933 | 527,832 | 406,100 |
Dividends declared per common share (unit) | $ 0.27 | $ 0.26 | $ 0.81 | $ 0.76 |
MPT Operating Partnership, L.P. [Member] | ||||
Revenues | ||||
Rent billed | $ 192,953 | $ 124,361 | $ 538,277 | $ 343,841 |
Straight-line rent | 51,125 | 31,026 | 103,697 | 76,813 |
Income from financing leases | 52,544 | 32,587 | 157,469 | 67,253 |
Interest and other income | 32,836 | 36,782 | 115,989 | 109,852 |
Total revenues | 329,458 | 224,756 | 915,432 | 597,759 |
Expenses | ||||
Interest | 82,263 | 64,519 | 243,538 | 167,396 |
Real estate depreciation and amortization | 69,665 | 40,833 | 192,049 | 108,161 |
Property-related | 5,897 | 4,038 | 19,178 | 15,394 |
General and administrative | 31,718 | 23,286 | 97,121 | 69,009 |
Total expenses | 189,543 | 132,676 | 551,886 | 359,960 |
Other income (expense) | ||||
(Loss) gain on sale of real estate | (927) | 209 | (2,703) | 62 |
Real estate impairment charges | (19,006) | |||
Earnings from equity interests | 5,893 | 3,474 | 15,263 | 11,635 |
Unutilized financing fees | (3,959) | (611) | (4,873) | |
Other (including mark-to-market adjustments on equity securities) | 2,461 | (2,282) | (9,499) | (1,497) |
Total other income (expense) | 7,427 | (2,558) | (16,556) | 5,327 |
Income before income tax | 147,342 | 89,522 | 346,990 | 243,126 |
Income tax (expense) benefit | (15,985) | 745 | (24,824) | 3,352 |
Net income | 131,357 | 90,267 | 322,166 | 246,478 |
Net income attributable to non-controlling interests | (251) | (481) | (600) | (1,432) |
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 131,106 | $ 89,786 | $ 321,566 | $ 245,046 |
Earnings per common share (units) basic and diluted | ||||
Net income attributable to MPT common stockholders (Operating Partnership partners) | $ 0.25 | $ 0.20 | $ 0.61 | $ 0.60 |
Weighted average shares (units) outstanding basic | 531,095 | 439,581 | 526,651 | 404,902 |
Weighted average shares (units) outstanding diluted | 532,436 | 440,933 | 527,832 | 406,100 |
Dividends declared per common share (unit) | $ 0.27 | $ 0.26 | $ 0.81 | $ 0.76 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income | $ 131,357 | $ 90,267 | $ 322,166 | $ 246,478 |
Other comprehensive income: | ||||
Unrealized loss on interest rate swap | (2,624) | (15,441) | (35,635) | (20,699) |
Foreign currency translation gain (loss) | 19,983 | (8,048) | 2,886 | (11,118) |
Total comprehensive income | 148,716 | 66,778 | 289,417 | 214,661 |
Comprehensive income attributable to non-controlling interests | (251) | (481) | (600) | (1,432) |
Comprehensive income attributable to MPT common stockholders (Operating Partnership Partners) | 148,465 | 66,297 | 288,817 | 213,229 |
MPT Operating Partnership, L.P. [Member] | ||||
Net income | 131,357 | 90,267 | 322,166 | 246,478 |
Other comprehensive income: | ||||
Unrealized loss on interest rate swap | (2,624) | (15,441) | (35,635) | (20,699) |
Foreign currency translation gain (loss) | 19,983 | (8,048) | 2,886 | (11,118) |
Total comprehensive income | 148,716 | 66,778 | 289,417 | 214,661 |
Comprehensive income attributable to non-controlling interests | (251) | (481) | (600) | (1,432) |
Comprehensive income attributable to MPT common stockholders (Operating Partnership Partners) | $ 148,465 | $ 66,297 | $ 288,817 | $ 213,229 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity / Capital - USD ($) shares in Thousands, $ in Thousands | Total | MPT Operating Partnership, L.P. [Member] | MPT Operating Partnership, L.P. [Member]General Partner [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]MPT Operating Partnership, L.P. [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]MPT Operating Partnership, L.P. [Member]General Partner [Member] | Common Par Value [Member] | Common Par Value [Member]MPT Operating Partnership, L.P. [Member]Limited Partner [Member] | Common Par Value [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]MPT Operating Partnership, L.P. [Member]Limited Partner [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Retained Earnings (Deficit) [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member]MPT Operating Partnership, L.P. [Member] | Treasury Shares [Member] | Non-Controlling Interests [Member] | Non-Controlling Interests [Member]MPT Operating Partnership, L.P. [Member] | Long Term Incentive Plan [Member]MPT Operating Partnership, L.P. [Member]Limited Partner [Member] |
Beginning balance at Dec. 31, 2018 | $ 4,560,938 | $ 4,561,328 | $ 46,084 | $ 371 | $ 4,559,616 | $ 4,442,948 | $ 162,768 | $ (58,202) | $ (58,202) | $ (777) | $ 13,830 | $ 13,830 | ||||||
Beginning balance (in shares) at Dec. 31, 2018 | 3,706 | 370,637 | 366,931 | 232 | ||||||||||||||
Net income | 76,291 | 76,291 | $ 758 | $ 75,064 | 75,822 | 469 | 469 | |||||||||||
Unrealized loss on interest rate swap, net of tax | (3,772) | (3,772) | (3,772) | (3,772) | ||||||||||||||
Foreign currency translation gain (loss) | (5,918) | (5,918) | (5,918) | (5,918) | ||||||||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation | 6,715 | 6,715 | $ 68 | $ 1 | $ 6,647 | 6,714 | ||||||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation (shares) | 11 | 1,055 | 1,044 | |||||||||||||||
Distributions to non-controlling interests | (645) | (645) | (645) | (645) | ||||||||||||||
Proceeds from offering (net of offering costs) | 354,030 | 354,030 | $ 3,540 | $ 20 | $ 350,490 | 354,010 | ||||||||||||
Proceeds from offering (net of offering costs) (shares) | 201 | 20,147 | 19,946 | |||||||||||||||
Dividends (Distributions) declared | (97,163) | (97,163) | $ (972) | $ (96,191) | (97,163) | |||||||||||||
Ending balance at Mar. 31, 2019 | 4,890,476 | 4,890,866 | $ 49,478 | $ 392 | $ 4,895,626 | 4,803,672 | 141,427 | (67,892) | (67,892) | (777) | 13,654 | 13,654 | ||||||
Ending balance (in shares) at Mar. 31, 2019 | 3,918 | 391,839 | 387,921 | 232 | ||||||||||||||
Beginning balance at Dec. 31, 2018 | 4,560,938 | 4,561,328 | $ 46,084 | $ 371 | $ 4,559,616 | 4,442,948 | 162,768 | (58,202) | (58,202) | (777) | 13,830 | 13,830 | ||||||
Beginning balance (in shares) at Dec. 31, 2018 | 3,706 | 370,637 | 366,931 | 232 | ||||||||||||||
Net income | 246,478 | 246,478 | ||||||||||||||||
Unrealized loss on interest rate swap, net of tax | (20,699) | (20,699) | ||||||||||||||||
Foreign currency translation gain (loss) | (11,118) | (11,118) | ||||||||||||||||
Ending balance at Sep. 30, 2019 | 5,986,818 | 5,987,208 | $ 60,666 | $ 460 | $ 6,003,283 | 5,972,341 | 91,535 | (90,019) | (90,019) | (777) | 13,278 | 13,278 | ||||||
Ending balance (in shares) at Sep. 30, 2019 | 4,598 | 459,778 | 455,180 | 232 | ||||||||||||||
Beginning balance at Mar. 31, 2019 | 4,890,476 | 4,890,866 | $ 49,478 | $ 392 | $ 4,895,626 | 4,803,672 | 141,427 | (67,892) | (67,892) | (777) | 13,654 | 13,654 | ||||||
Beginning balance (in shares) at Mar. 31, 2019 | 3,918 | 391,839 | 387,921 | 232 | ||||||||||||||
Net income | 79,920 | 79,920 | $ 794 | $ 78,644 | 79,438 | 482 | 482 | |||||||||||
Unrealized loss on interest rate swap, net of tax | (1,486) | (1,486) | (1,486) | (1,486) | ||||||||||||||
Foreign currency translation gain (loss) | 2,848 | 2,848 | 2,848 | 2,848 | ||||||||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation | 6,317 | 6,317 | $ 63 | $ 6,254 | 6,317 | |||||||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation (shares) | 1 | 119 | 118 | |||||||||||||||
Distributions to non-controlling interests | (670) | (670) | (670) | (670) | ||||||||||||||
Proceeds from offering (net of offering costs) | 45,323 | 45,323 | $ 453 | $ 2 | $ 44,870 | 45,321 | ||||||||||||
Proceeds from offering (net of offering costs) (shares) | 25 | 2,467 | 2,442 | |||||||||||||||
Dividends (Distributions) declared | (99,093) | (99,093) | $ (991) | $ (98,102) | (99,093) | |||||||||||||
Ending balance at Jun. 30, 2019 | 4,923,635 | 4,924,025 | $ 49,797 | $ 394 | $ 4,927,292 | 4,855,310 | 121,772 | (66,530) | (66,530) | (777) | 13,466 | 13,466 | ||||||
Ending balance (in shares) at Jun. 30, 2019 | 3,944 | 394,425 | 390,481 | 232 | ||||||||||||||
Net income | 90,267 | 90,267 | $ 898 | $ 88,888 | 89,786 | 481 | 481 | |||||||||||
Unrealized loss on interest rate swap, net of tax | (15,441) | (15,441) | (15,441) | (15,441) | ||||||||||||||
Foreign currency translation gain (loss) | (8,048) | (8,048) | (8,048) | (8,048) | ||||||||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation | 9,087 | 9,087 | $ 91 | $ 8,996 | 9,087 | |||||||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation (shares) | 1 | 118 | 117 | |||||||||||||||
Distributions to non-controlling interests | (669) | (669) | (669) | (669) | ||||||||||||||
Proceeds from offering (net of offering costs) | 1,108,010 | 1,108,010 | $ 11,080 | $ 66 | $ 1,096,930 | 1,107,944 | ||||||||||||
Proceeds from offering (net of offering costs) (shares) | 653 | 65,235 | 64,582 | |||||||||||||||
Dividends (Distributions) declared | (120,023) | (120,023) | $ (1,200) | $ (118,823) | (120,023) | |||||||||||||
Ending balance at Sep. 30, 2019 | 5,986,818 | 5,987,208 | $ 60,666 | $ 460 | $ 6,003,283 | 5,972,341 | 91,535 | (90,019) | (90,019) | (777) | 13,278 | 13,278 | ||||||
Ending balance (in shares) at Sep. 30, 2019 | 4,598 | 459,778 | 455,180 | 232 | ||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 7,028,154 | $ 7,028,544 | $ 70,939 | $ (8,399) | $ (8,399) | $ (84) | $ 518 | $ 7,020,403 | $ (8,315) | 7,008,199 | 83,012 | $ (8,399) | (62,905) | (62,905) | (777) | 107 | 107 | |
Beginning balance (in shares) at Dec. 31, 2019 | 5,176 | 517,522 | 512,346 | 232 | ||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||||||||
Net income | $ 81,157 | $ 81,157 | $ 810 | $ 80,182 | 80,992 | 165 | 165 | |||||||||||
Unrealized loss on interest rate swap, net of tax | (25,103) | (25,103) | (25,103) | (25,103) | ||||||||||||||
Foreign currency translation gain (loss) | (23,272) | (23,272) | (23,272) | (23,272) | ||||||||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation | 10,036 | 10,036 | $ 100 | $ 2 | $ 9,936 | 10,034 | ||||||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation (shares) | 23 | 2,312 | 2,289 | |||||||||||||||
Distributions to non-controlling interests | (165) | (165) | (165) | (165) | ||||||||||||||
Proceeds from offering (net of offering costs) | 61,682 | 61,682 | $ 617 | $ 2 | $ 61,065 | 61,680 | ||||||||||||
Proceeds from offering (net of offering costs) (shares) | 26 | 2,601 | 2,575 | |||||||||||||||
Dividends (Distributions) declared | (141,580) | (141,580) | $ (1,416) | $ (140,164) | (141,580) | |||||||||||||
Ending balance at Mar. 31, 2020 | 6,982,510 | 6,982,900 | $ 70,966 | $ 522 | $ 7,023,107 | 7,079,913 | 14,025 | (111,280) | (111,280) | (777) | 107 | 107 | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 5,225 | 522,435 | 517,210 | 232 | ||||||||||||||
Beginning balance at Dec. 31, 2019 | 7,028,154 | 7,028,544 | $ 70,939 | $ (8,399) | $ (8,399) | $ (84) | $ 518 | $ 7,020,403 | $ (8,315) | 7,008,199 | 83,012 | $ (8,399) | (62,905) | (62,905) | (777) | 107 | 107 | |
Beginning balance (in shares) at Dec. 31, 2019 | 5,176 | 517,522 | 512,346 | 232 | ||||||||||||||
Net income | 322,166 | 322,166 | ||||||||||||||||
Unrealized loss on interest rate swap, net of tax | (35,635) | (35,635) | ||||||||||||||||
Foreign currency translation gain (loss) | 2,886 | 2,886 | ||||||||||||||||
Ending balance at Sep. 30, 2020 | 7,212,877 | 7,213,267 | $ 73,062 | $ 536 | $ 7,230,623 | 7,337,155 | (33,619) | (95,654) | (95,654) | (777) | 5,236 | 5,236 | ||||||
Ending balance (in shares) at Sep. 30, 2020 | 5,356 | 535,574 | 530,218 | 232 | ||||||||||||||
Beginning balance at Mar. 31, 2020 | 6,982,510 | 6,982,900 | $ 70,966 | $ 522 | $ 7,023,107 | 7,079,913 | 14,025 | (111,280) | (111,280) | (777) | 107 | 107 | ||||||
Beginning balance (in shares) at Mar. 31, 2020 | 5,225 | 522,435 | 517,210 | 232 | ||||||||||||||
Net income | 109,652 | 109,652 | $ 1,095 | $ 108,373 | 109,468 | 184 | 184 | |||||||||||
Unrealized loss on interest rate swap, net of tax | (7,908) | (7,908) | (7,908) | (7,908) | ||||||||||||||
Foreign currency translation gain (loss) | 6,175 | 6,175 | 6,175 | 6,175 | ||||||||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation | 12,192 | 12,192 | $ 122 | $ 1 | $ 12,070 | 12,191 | ||||||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation (shares) | 2 | 189 | 187 | |||||||||||||||
Distributions to non-controlling interests | (185) | (185) | (185) | (185) | ||||||||||||||
Proceeds from offering (net of offering costs) | 108,105 | 108,105 | $ 1,081 | $ 6 | $ 107,024 | 108,099 | ||||||||||||
Proceeds from offering (net of offering costs) (shares) | 60 | 6,017 | 5,957 | |||||||||||||||
Dividends (Distributions) declared | (143,264) | (143,264) | $ (1,433) | $ (141,831) | (143,264) | |||||||||||||
Ending balance at Jun. 30, 2020 | 7,067,277 | 7,067,667 | $ 71,831 | $ 529 | $ 7,108,743 | 7,200,203 | (19,771) | (113,013) | (113,013) | (777) | 106 | 106 | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 5,287 | 528,641 | 523,354 | 232 | ||||||||||||||
Net income | 131,357 | 131,357 | $ 1,311 | $ 129,795 | 131,106 | 251 | 251 | |||||||||||
Unrealized loss on interest rate swap, net of tax | (2,624) | (2,624) | (2,624) | (2,624) | ||||||||||||||
Foreign currency translation gain (loss) | 19,983 | 19,983 | 19,983 | 19,983 | ||||||||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation | 12,372 | 12,372 | $ 124 | $ 12,248 | 12,372 | |||||||||||||
Stock (Unit) vesting and amortization of stock (unit)-based compensation (shares) | 2 | 188 | 186 | |||||||||||||||
Sale of non-controlling interests | 5,073 | 5,073 | 5,073 | 5,073 | ||||||||||||||
Distributions to non-controlling interests | (194) | (194) | (194) | (194) | ||||||||||||||
Proceeds from offering (net of offering costs) | 124,587 | 124,587 | $ 1,246 | $ 7 | $ 123,341 | 124,580 | ||||||||||||
Proceeds from offering (net of offering costs) (shares) | 67 | 6,745 | 6,678 | |||||||||||||||
Dividends (Distributions) declared | (144,954) | (144,954) | $ (1,450) | $ (143,504) | (144,954) | |||||||||||||
Ending balance at Sep. 30, 2020 | $ 7,212,877 | $ 7,213,267 | $ 73,062 | $ 536 | $ 7,230,623 | $ 7,337,155 | $ (33,619) | $ (95,654) | $ (95,654) | $ (777) | $ 5,236 | $ 5,236 | ||||||
Ending balance (in shares) at Sep. 30, 2020 | 5,356 | 535,574 | 530,218 | 232 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity / Capital (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Dividends (Distributions) declared per common share / unit | $ 0.27 | $ 0.26 | $ 0.81 | $ 0.76 | ||||
MPT Operating Partnership, L.P. [Member] | ||||||||
Dividends (Distributions) declared per common share / unit | 0.27 | $ 0.27 | $ 0.27 | 0.26 | $ 0.25 | $ 0.25 | $ 0.81 | $ 0.76 |
MPT Operating Partnership, L.P. [Member] | General Partner [Member] | ||||||||
Dividends (Distributions) declared per common share / unit | 0.27 | 0.27 | 0.27 | 0.26 | 0.25 | 0.25 | ||
Retained Earnings (Deficit) [Member] | ||||||||
Dividends (Distributions) declared per common share / unit | 0.27 | 0.27 | 0.27 | 0.26 | 0.25 | 0.25 | ||
Common Par Value [Member] | MPT Operating Partnership, L.P. [Member] | Limited Partner [Member] | ||||||||
Dividends (Distributions) declared per common share / unit | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.26 | $ 0.25 | $ 0.25 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities | ||
Net income | $ 322,166 | $ 246,478 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 200,807 | 111,067 |
Amortization of deferred financing costs and debt discount | 9,773 | 6,293 |
Straight-line rent revenue and other | (161,163) | (91,616) |
Share / (Unit)-based compensation expense | 34,600 | 22,119 |
Loss (gain) from sale of real estate and other | 2,703 | (62) |
Impairment charges | 19,006 | |
Straight-line rent and other write-off | 27,098 | 7,232 |
Unutilized financing costs | 611 | 4,873 |
Pre-acquisition rent collected - Circle Transaction | (35,020) | |
Other adjustments | 27,187 | 11,643 |
Changes in: | ||
Interest and rent receivables | (6,189) | 528 |
Other assets | 12,117 | 4,409 |
Accounts payable and accrued expenses | (11,478) | 4,413 |
Net cash provided by operating activities | 442,218 | 327,377 |
Investing activities | ||
Cash paid for acquisitions and other related investments | (3,524,910) | (3,703,092) |
Net proceeds from sale of real estate | 93,042 | 4,859 |
Principal received on loans receivable | 738,036 | 920 |
Investment in loans receivable | (65,708) | (34,149) |
Construction in progress and other | (42,227) | (55,168) |
Return of equity investment | 63,122 | |
Capital additions and other investments, net | (8,362) | (213,096) |
Net cash used for investing activities | (2,747,007) | (3,999,726) |
Financing activities | ||
Proceeds from term debt | 915,950 | 1,732,740 |
Revolving credit facilities, net | 225,000 | 417,089 |
Dividends / Distribution paid | (423,005) | (291,675) |
Lease deposits and other obligations to tenants | 7,584 | (8,349) |
Proceeds from sale of common shares, net of offering costs | 294,374 | 1,507,363 |
Payment of deferred financing costs and other financing activities | (2,143) | (24,187) |
Net cash provided by financing activities | 1,017,760 | 3,332,981 |
Decrease in cash, cash equivalents, and restricted cash for period | (1,287,029) | (339,368) |
Effect of exchange rate changes | 9,116 | (16,645) |
Cash, cash equivalents, and restricted cash at beginning of period | 1,467,991 | 822,425 |
Cash, cash equivalents, and restricted cash at end of period | 190,078 | 466,412 |
Interest paid | 231,257 | 158,259 |
Supplemental schedule of non-cash financing activities: | ||
Dividend / Distributions declared, unpaid | 144,954 | 120,023 |
Cash, cash equivalents, and restricted cash are comprised of the following: | ||
Cash and cash equivalents at beginning of period | 1,462,286 | 820,868 |
Restricted cash, included in Other assets at beginning of period | $ 5,705 | $ 1,557 |
Restricted Cash and Cash Equivalents, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Cash, cash equivalents, and restricted cash at beginning of period | $ 1,467,991 | $ 822,425 |
Cash and cash equivalents at end of period | 183,794 | 461,622 |
Restricted cash, included in Other assets at end of period | $ 6,284 | $ 4,790 |
Restricted Cash and Cash Equivalents, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Cash, cash equivalents, and restricted cash at end of period | $ 190,078 | $ 466,412 |
MPT Operating Partnership, L.P. [Member] | ||
Operating activities | ||
Net income | 322,166 | 246,478 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 200,807 | 111,067 |
Amortization of deferred financing costs and debt discount | 9,773 | 6,293 |
Straight-line rent revenue and other | (161,163) | (91,616) |
Share / (Unit)-based compensation expense | 34,600 | 22,119 |
Loss (gain) from sale of real estate and other | 2,703 | (62) |
Impairment charges | 19,006 | |
Straight-line rent and other write-off | 27,098 | 7,232 |
Unutilized financing costs | 611 | 4,873 |
Pre-acquisition rent collected - Circle Transaction | (35,020) | |
Other adjustments | 27,187 | 11,643 |
Changes in: | ||
Interest and rent receivables | (6,189) | 528 |
Other assets | 12,117 | 4,409 |
Accounts payable and accrued expenses | (11,478) | 4,413 |
Net cash provided by operating activities | 442,218 | 327,377 |
Investing activities | ||
Cash paid for acquisitions and other related investments | (3,524,910) | (3,703,092) |
Net proceeds from sale of real estate | 93,042 | 4,859 |
Principal received on loans receivable | 738,036 | 920 |
Investment in loans receivable | (65,708) | (34,149) |
Construction in progress and other | (42,227) | (55,168) |
Return of equity investment | 63,122 | |
Capital additions and other investments, net | (8,362) | (213,096) |
Net cash used for investing activities | (2,747,007) | (3,999,726) |
Financing activities | ||
Proceeds from term debt | 915,950 | 1,732,740 |
Revolving credit facilities, net | 225,000 | 417,089 |
Dividends / Distribution paid | (423,005) | (291,675) |
Lease deposits and other obligations to tenants | 7,584 | (8,349) |
Proceeds from sale of units, net of offering costs | 294,374 | 1,507,363 |
Payment of deferred financing costs and other financing activities | (2,143) | (24,187) |
Net cash provided by financing activities | 1,017,760 | 3,332,981 |
Decrease in cash, cash equivalents, and restricted cash for period | (1,287,029) | (339,368) |
Effect of exchange rate changes | 9,116 | (16,645) |
Cash, cash equivalents, and restricted cash at beginning of period | 1,467,991 | 822,425 |
Cash, cash equivalents, and restricted cash at end of period | 190,078 | 466,412 |
Interest paid | 231,257 | 158,259 |
Supplemental schedule of non-cash financing activities: | ||
Dividend / Distributions declared, unpaid | 144,954 | 120,023 |
Cash, cash equivalents, and restricted cash are comprised of the following: | ||
Cash and cash equivalents at beginning of period | 1,462,286 | 820,868 |
Restricted cash, included in Other assets at beginning of period | $ 5,705 | $ 1,557 |
Restricted Cash and Cash Equivalents, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Cash, cash equivalents, and restricted cash at beginning of period | $ 1,467,991 | $ 822,425 |
Cash and cash equivalents at end of period | 183,794 | 461,622 |
Restricted cash, included in Other assets at end of period | $ 6,284 | $ 4,790 |
Restricted Cash and Cash Equivalents, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Cash, cash equivalents, and restricted cash at end of period | $ 190,078 | $ 466,412 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 1. Organization Medical Properties Trust, Inc., a Maryland corporation, was formed on August 27, 2003, under the Maryland General Corporation Law for the purpose of engaging in the business of investing in, owning, and leasing healthcare real estate. Our operating partnership subsidiary, MPT Operating Partnership, L.P., (the “Operating Partnership”) through which we conduct all of our operations, was formed in September 2003. Through another wholly-owned subsidiary, Medical Properties Trust, LLC, we are the sole general partner of the Operating Partnership. At present, we directly own substantially all of the limited partnership interests in the Operating Partnership and have elected to report our required disclosures and that of the Operating Partnership on a combined basis, except where material differences exist. We have operated as a real estate investment trust (“REIT”) since April 6, 2004, and accordingly, elected REIT status upon the filing, in September 2005, of the calendar year 2004 federal income tax return. Accordingly, we will generally not be subject to United States (“U.S.”) federal income tax, provided that we continue to qualify as a REIT and our distributions to our stockholders equal or exceed our taxable income. Certain non-real estate activities we undertake are conducted by entities which we elected to be treated as taxable REIT subsidiaries (“TRS”). Our TRS entities are subject to both U.S. federal and state income taxes. For our properties located outside the U.S., we are subject to the local taxes of the jurisdictions where our properties reside and/or legal entities are domiciled; however, we do not expect to incur substantial additional taxes in the U.S. as the majority of such income flows through our REIT. Our primary business strategy is to acquire and develop real estate and improvements, primarily for long-term lease to providers of healthcare services, such as operators of general acute care hospitals, inpatient physical rehabilitation hospitals, and long-term acute care hospitals. We also make mortgage and other loans to operators of similar facilities. In addition, we may obtain profits or equity interests in our tenants, from time to time, in order to enhance our overall return. Our business model facilitates acquisitions and recapitalizations, and allows operators of healthcare facilities to unlock the value of their real estate to fund facility improvements, technology upgrades, and other investments in operations. At September 30, 2020, we have investments in 385 facilities in 33 states in the U.S., in six countries in Europe, and across Australia. We manage our business as a single business segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Unaudited Interim Condensed Consolidated Financial Statements : The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information, including rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. Operating results for the three and nine months ended September 30, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The condensed consolidated balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. The preparation of our consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. During the first nine months of 2020, the global outbreak of a novel coronavirus, or COVID-19, has spread all over the world including countries where we own and lease facilities. The World Health Organization designated COVID-19 as a pandemic, and numerous countries, including the U.S., declared national emergencies with respect to COVID-19. As the global impact of the outbreak evolved, many countries reacted by instituting quarantines and restrictions on travel, closing financial markets and/or restricting trade- including requiring medically necessary elective surgeries at hospitals to be deferred. Although hospitals are back accepting patients and performing medically necessary elective surgeries, many of these trade restrictions are still in place. We believe the estimates and assumptions underlying our consolidated financial statements are reasonable and supportable based on the information available as of September 30, 2020 (particularly as it relates to our assessments of the recoverability of our real estate and the adequacy of our credit loss reserves on loans and financing receivables). However, the ultimate impact to our tenants’ results of operations and liquidity and their ability to pay our rent and interest due to the impact of COVID-19 cannot be predicted with 100% confidence, particularly given we are still learning the full scope, severity, and duration of the pandemic and the actions needed to contain the pandemic or mitigate its impact. This makes any estimates and assumptions as of September 30, 2020 inherently less certain than they would be absent the potential impact of COVID-19. Actual results may ultimately differ from our estimates. For information about significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019 . There have been no material changes to these significant accounting po licies other than the following: On January 1, 2020, we adopted Accounting Standards Update (“ASU”) No. 2016-13, “Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). This standard requires a new forward-looking “expected loss” model measured over the contractual life of an asset that considers forecasts of future economic conditions, as well as past and current events, to be used for our financing receivables, including financing leases and loans, which the Financial Accounting Standards Board believes will result in more timely recognition of such losses. Additionally, we have made the accounting policy election to exclude interest receivables from the credit loss reserve analysis and will continue to timely reserve or write-off such short-term receivables. Pursuant to ASU 2016-13, we grouped our financial instruments into two primary pools of similar credit risk: secured and unsecured. The secured instruments include investment in financing leases and mortgage loans, as all are secured by the underlying real estate among other collateral. The unsecured instruments include acquisition, working capital, and shareholder loans. Within these two major pools, we further grouped our instruments into sub-pools based on several tenant/borrower characteristics, including years of experience in the healthcare industry and in a particular market or region and overall capitalization. We then determined a credit loss percentage per pool based on our history of credit losses incurred on similar instruments. We used an historical period of time in determining such loss rates that closely matches the remaining terms of the financial instruments being analyzed in the respective pools, since our underwriting process has been consistent over this time. Finally, we made specific modifications for current trends, as appropriate. Upon adoption of this standard, we recorded a credit loss reserve of $8.4 million with the effect recorded in equity as a cumulative effect of a change in accounting principle. Reclassifications Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform to the current period presentation. |
Real Estate and Lending Activit
Real Estate and Lending Activities | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
Real Estate and Lending Activities | 3. Real Estate and Lending Activities New Investments We acquired or invested in the following net assets (in thousands): For the Nine Months Ended September 30, 2020 2019 Land and land improvements $ 330,941 $ 375,721 Buildings 2,610,197 1,320,449 Intangible lease assets — subject to amortization (weighted average useful life 27.6 years for 2020 and 18.7 years for 2019) 364,006 149,201 Investment in financing leases — 1,386,797 Equity investments — 284,399 Mortgage loans 47,641 51,267 Other loans and assets 306,328 135,258 Liabilities assumed (134,203 ) — Total assets acquired $ 3,524,910 $ 3,703,092 Loans repaid(1) (737,242 ) — Total net assets acquired $ 2,787,668 $ 3,703,092 (1) The 2020 column includes $737 million of loans advanced to Steward Health Care, Inc. (“Steward”) in 2017 and exchanged for the fee simple real estate of two hospitals as described below. 2020 Activity Circle Transaction On January 8, 2020, we acquired a portfolio of 30 acute care hospitals located throughout the United Kingdom for approximately £1.5 billion from affiliates of BMI Healthcare, Inc. (“BMI”). In a related transaction, affiliates of Circle Health Ltd. (“Circle”) entered into definitive agreements to acquire BMI and assume operations of its 52 facilities in the United Kingdom subject to customary regulatory conditions. As part of our acquisition, we inherited 30 existing leases with the operator that had initial fixed terms ending in 2050, with no renewal options but with annual inflation-based escalators. Once final regulatory approval was received in the 2020 second quarter, these 30 leases with Circle were amended (effe ctive June 16, 2020) to include two five-year renewal options and improve the annual inflation-based escalators. These 30 leases are cross-defaulted and guaranteed by Circle. Other Transactions On August 13, 2020, we acquired a general acute care hospital in Lynwood, California for a total investment of approximately $300 million. This property is leased to Prime Healthcare Services, Inc. (“Prime”) pursuant to an existing long-term master lease, which Prime has agreed to extend to August 2035, with annual escalations and multiple extension options. On July 8, 2020, we acquired the fee simple real estate of two general acute care hospitals located in the Salt Lake City, Utah area, Davis Hospital & Medical Center and Jordan Valley Medical Center, in exchange for the reduction of the mortgage loans made to Steward for such properties and additional cash consideration of $200 million based on their relative fair value. The approximate $950 million investment in these two facilities is now subject to the Steward master lease. On June 24, 2020, we originated a CHF 45 million secured loan to Infracore SA (“Infracore”). On May 13, 2020, we formed a joint venture for the purpose of investing in the operations of international hospitals. As part of the formation, we originated a $205 million acquisition loan. We have a 49% interest in this joint venture and are accounting for our investment using the fair value option election. The joint venture simultaneously purchased from Steward the rights and existing assets related to all present and future international opportunities previously owned by Steward for strategic, regulatory, and risk management purposes. Other acquisitions throughout the first nine months of 2020 included one inpatient rehabilitation hospital and one general acute care hospital. The inpatient rehabilitation facility, located in Dahlen, Germany, was acquired on August 5, 2020 for €12.5 million and is leased to MEDIAN Kliniken S.à.r.l. pursuant to the existing master lease. The general acute care facility, located in Darlington, United Kingdom, was acquired on August 7, 2020 for £29.4 million and is leased to Circle pursuant to a long-term lease. 2019 Activity Prospect Transaction On August 23, 2019, we invested in a portfolio of 14 acute care hospitals and two behavioral health facilities operated by Prospect Medical Holdings, Inc. (“Prospect”) for a combined purchase price of approximately $1.55 billion. Our investment included the acquisition of the real estate of 11 acute care hospitals and two behavioral health facilities for $1.4 billion. We accounted for these properties as a financing receivable (as presented in the “Investment in financing leases” line of the condensed consolidated balance sheet) under the new lease accounting rules due to certain lessee end-of-term purchase options. In addition, we originated a $51.3 million mortgage loan, secured by a first mortgage on an acute care hospital, and a $112.9 million term loan which we expect will be converted into the acquisition of two additional acute care hospitals upon the satisfaction of certain conditions. The master leases, mortgage loan and term loan are cross-defaulted and cross-collateralized. The master leases and mortgage loan have substantially similar terms, with a 15-year initial fixed term subject to three extension options, plus annual increases based on inflation. The agreements provide for the potential for a future purchase price adjustment of up to an additional $250.0 million, based on achievement of certain performance thresholds over a three-year Other Transactions On August 30, 2019, we invested in a portfolio of facilities throughout various states for approximately $254 million. The properties are leased to Vibra Healthcare, LLC (“Vibra”) pursuant to a master lease agreement with an initial lease term of 20 years. The lease provides for annual escalations and includes three five-year On August 16, 2019, we acquired freehold interests in eight acute care hospitals located throughout England for an aggregate purchase price of approximately £347 million. The hospitals are leased to Ramsay Health Care pursuant to in-place net leases that had approximately 18-year remaining lease terms upon our acquisition and include annual fixed and periodic market-based escalations. On June 10, 2019, we acquired seven community hospitals in Kansas for approximately $145.4 million. The properties are leased to an affiliate of Saint Luke’s Health System (“SLHS”) pursuant to seven individual in-place leases that had an average remaining lease term of 14 years upon our acquisition. The leases provide for fixed escalations every five years and include two five-year On June 6, 2019, we acquired 11 hospitals in Australia for a purchase price of approximately AUD $1.2 billion plus stamp duties and registration fees of AUD $66.6 million. The properties are leased to Healthscope, Ltd. (“Healthscope”), pursuant to master lease agreements that had an average initial term of 20 years, upon our acquisition, with annual fixed escalations and multiple extension options. Healthscope was acquired in a simultaneous transaction by Brookfield Business Partners L.P. and certain of its institutional partners. On May 27, 2019, we invested in a portfolio of 13 acute care campuses and two additional properties in Switzerland for an aggregate purchase price of approximately CHF 236.6 million. The investment was effected through our purchase of a stake in a Swiss healthcare real estate company, Infracore, from the previous majority shareholder, Aevis Victoria SA (“Aevis”). The facilities are leased to Swiss Medical Network, a wholly-owned Aevis subsidiary, pursuant to leases that had an average 23-year remaining term upon our acquisition and are subject to annual escalation provisions. We are accounting for our 40% interest in this joint venture under the equity method. Additionally, we purchased a 4.9% stake in Aevis for approximately CHF 47 million on June 28, 2019 that we are marking to fair value through income each quarter. Other acquisitions throughout the first nine months of 2019 included three acute care hospitals and one inpatient rehabilitation hospital for an aggregate investment of approximately $135 million. Development Activities On May 15, 2020, we agreed to finance the development of and lease an inpatient rehabilitation facility in Bakersfield, California for $47.9 million. This facility will be leased to Ernest Health, Inc. (“Ernest”) and is expected to commence rent in the fourth quarter of 2021. During the 2020 second quarter, we completed construction on one general acute care facility and one inpatient rehabilitation facility, both located in Birmingham, England. We began recognizing revenue on these two properties on June 29, 2020. These facilities are leased to Circle pursuant to a long-term lease. During the 2020 first quarter, we completed construction and began recording rental income on a general acute care facility located in Idaho Falls, Idaho. This facility commenced rent on January 21, 2020 and is being leased to Surgery Partners, Inc. pursuant to an existing long-term lease. See table below for a status update on our current development projects (in thousands): Property Commitment Costs Incurred as of September 30, 2020 Estimated Rent Commencement Date NeuroPsychiatric Hospitals (Houston, Texas) $ 27,500 $ 20,241 2Q 2021 Ernest (Bakersfield, California) 47,929 16,010 4Q 2021 $ 75,429 $ 36,251 Disposals During the first nine months of 2020, we completed the disposition of nine facilities and six ancillary properties for approximately $93 million. The transactions resulted in a net loss on real estate of $2.7 million. Leasing Operations (Lessor) We acquire and develop healthcare facilities and lease the facilities to healthcare operating companies under long-term net leases (typical initial fixed terms of 15 years) and most include renewal options at the election of our tenants, generally in five year increments. More than 97% of our leases provide annual rent escalations based on increases in the Consumer Price Index (or similar index outside the U.S.) and/or fixed minimum annual escalations ranging from 0.5% to 3.0%. Many of our domestic leases contain purchase options that are generally priced at the greater of fair market value or our total investment. For five properties with a carrying value of $229 million, our leases require a residual value guarantee from the tenant. Our leases typically require the tenant to handle and bear most of the costs associated with our properties including repairs/maintenance, property taxes, and insurance. We routinely inspect our properties to ensure the residual value of each of our assets is being maintained. Except for leases classified as financing leases, all of our leases are classified as operating leases. At September 30, 2020, leases on 14 Ernest facilities and ten Prime facilities are accounted for as direct financing leases and leases on 13 of our Prospect facilities are accounted for as a financing. The components of our total investment in financing leases consisted of the following (in thousands): As of September 30, 2020 As of December 31, 2019 Minimum lease payments receivable $ 1,838,490 $ 1,884,921 Estimated residual values 394,195 394,195 Less: Unearned income and allowance for credit loss (1,566,655 ) (1,618,252 ) Net investment in direct financing leases 666,030 660,864 Other financing leases (net of allowance for credit loss) 1,423,189 1,399,438 Total investment in financing leases $ 2,089,219 $ 2,060,302 Rent Deferrals Due to the COVID-19 pandemic and its impact on our tenants’ business during the first nine months of 2020, we agreed to defer collection on approximately 2% of our rent. The amount of this deferral, net of subsequent collections, is approximately $13 million as of September 30, 2020. Pursuant to our agreements with the tenants, we expect such deferred rent to be paid over specified periods in the future, with interest. Beginning October 1, 2020, we resumed collection on substantially all of our rent and interest. Adeptus Health Due to a decline in operating results of 20 freestanding emergency facilities and one acute care facility caused by a reduction in volumes from COVID-19 and other factors, we entered into agreements to sever the remaining leases with Adeptus Health, Inc. (“Adeptus”) in the second quarter of 2020. As a result, we recorded an approximate $20 million net charge, primarily all of which was for the write off of straight-line rent, partially offset by approximately $9 million of proceeds received from a letter of credit in the second quarter of 2020. Additionally, we recorded a $9.9 million real estate impairment charge on these severed facilities. At September 30, 2020, we no longer lease any properties to Adeptus and our net book value on those properties that were previously leased to Adeptus but are currently vacant approximates less than 1% of our total assets. In the third quarter of 2020, we re-leased two of these facilities to a new operator, pursuant to a long-term master lease. At September 30, 2020, we believe our investment in these real estate assets are fully recoverable, but no assurances can be given that we will not have any impairment in future periods. Alecto Facilities At September 30, 2020, we lease one acute care facility to Alecto Healthcare Services LLC (“Alecto”) and have a mortgage loan on a second property, representing less than 1% of our total assets. During the second quarter of 2020, we re-leased one acute care facility to West Virginia University and sold another facility previously leased to Alecto. In addition, we donated the Wheeling facility to a local municipality, resulting in a $9.1 million real estate impairment charge in the first quarter of 2020. Other Leasing Activity On July 24, 2020, we re-leased our five San Antonio, Texas free standing emergency facilities (with a total investment of approximately $30 million) to Methodist Healthcare System of San Antonio, a joint venture between HCA Healthcare and Methodist Healthcare Ministries of South Texas, pursuant to a long-term master lease. As a result, we recorded an approximate $1.5 million write-off of straight-line rent in the third quarter. Loans The following is a summary of our loans (net of allowance for credit loss in 2020): (in thousands) As of September 30, 2020 As of December 31, 2019 Mortgage loans $ 602,479 $ 1,275,022 Acquisition loans 334,281 123,893 Other loans 576,186 420,939 Total $ 1,512,946 $ 1,819,854 The decrease in mortgage loans relates to the conversion of Steward mortgage loans for the underlying fee simple real estate of two general acute care hospitals as more fully described under “New Investments” in this same Note 3 . The increase in acquisition loans relates to the $205 million loan to the new international joint venture described under “New Investments” in this same Note 3 Other loans consist of loans to our tenants for working capital and other purposes and include our shareholder loan made to the joint venture with Primotop Holdings S.à.r.l. (“Primotop”) in the amount of €290 million. Concentrations of Credit Risk We monitor concentration risk in several ways due to the nature of our real estate assets that are vital to the communities in which they are located and given our history of being able to replace inefficient operators of our facilities, if needed, with more effective operators: 1) Facility concentration – At September 30, 2020, our largest investment in any single property approximated 3% of our total assets, similar to December 31, 2019. 2) Operator concentration – For the nine months ended September 30, 2020, revenue from Steward, Circle, Prospect, and Prime represented 30%, 13%, 13%, and 11% of our total revenues, respectively. In comparison, Steward and Prime represented 44% and 16%, respectively, of our total revenues for the first nine months of 2019, while Prospect and Circle, collectively, represented less than 4%. 3) Geographic concentration – At September 30, 2020, investments in the U.S., Europe, and Australia represented approximately 70%, 25%, and 5%, respectively, of our total assets, compared to 74%, 20%, and 6% at December 31, 2019. 4) Facility type concentration – For the nine months ended September 30, 2020, approximately 89% of our revenues are from our general acute care facilities, while rehabilitation and long-term acute care facilities make up 8% and 3%, respectively. These percentages are similar to those for the first nine months of 2019. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt The following is a summary of debt (dollar amounts in thousands): As of September 30, 2020 As of December 31, 2019 Revolving credit facility $ 225,000 $ — Term loan 200,000 200,000 British pound sterling term loan(A) 904,400 — Australian term loan facility(A) 859,440 842,520 4.000% Senior Unsecured Notes due 2022(A) 586,050 560,650 2.550% Senior Unsecured Notes due 2023(A) 516,800 530,280 5.500% Senior Unsecured Notes due 2024 300,000 300,000 6.375% Senior Unsecured Notes due 2024 500,000 500,000 3.325% Senior Unsecured Notes due 2025(A) 586,050 560,650 5.250% Senior Unsecured Notes due 2026 500,000 500,000 5.000% Senior Unsecured Notes due 2027 1,400,000 1,400,000 3.692% Senior Unsecured Notes due 2028(A) 775,200 795,420 4.625% Senior Unsecured Notes due 2029 900,000 900,000 $ 8,252,940 $ 7,089,520 Debt issue costs and discount, net (62,271 ) (65,841 ) $ 8,190,669 $ 7,023,679 (A) Non-U.S. dollar denominated debt that reflects the exchange rate at September 30, 2020 and December 31, 2019, respectively. As of September 30, 2020, principal payments due on our debt (which exclude the effects of any discounts, premiums, or debt issue costs recorded) are as follows (in thousands): 2020 $ — 2021 225,000 2022 786,050 2023 516,800 2024 1,659,440 Thereafter 5,065,650 Total $ 8,252,940 2020 Activity British Pound Sterling Term Loan On January 6, 2020, we entered into a £700 million unsecured sterling-denominated term loan facility with Bank of America, N.A., as administrative agent, and a syndicate of financial institutions as the lender. The term loan facility matures on January 15, 2025. We used the proceeds under the facility to help finance our acquisition of the Circle transaction described in Note 3 . The applicable margin under the term loan is adjustable based on a pricing grid from 0.85% to 1.65% dependent on our current credit rating. On March 4, 2020, we entered into an interest rate swap transaction (effective March 6, 2020) to fix the interest rate to approximately 0.70% for the duration of the loan. The current applicable margin for the pricing grid (which can vary based on our credit rating) is 1.25% for an all-in fixed rate of 1.95%. 2019 Activity 4.625% Senior Unsecured Notes due 2029 On July 26, 2019, we completed a $900 million senior unsecured notes offering (“4.625% Senior Unsecured Notes due 2029”). Interest on the notes is payable semi-annually on February 1 and August 1 of each year, and commenced on February 1, 2020. The notes were issued at 99.5% of par value, pay interest at a rate of 4.625% per year and mature on August 1, 2029. On July 10, 2019, we received a commitment to provide a senior unsecured bridge loan facility to fund our investment in Prospect. With this commitment, we paid approximately $4 million of underwriting and other fees. However, this commitment was cancelled with the completion of the debt and equity offerings in July 2019 (as more fully described above and in Note 5 ), which resulted in fully expensing the total amount of underwriting and other fees that were paid. Australian Term Loan Facility On May 23, 2019, we entered into an AUD $1.2 billion term loan facility agreement with Bank of America, N.A., as administrative agent, and a syndicate of financial institutions as the lender. The term loan facility matures on May 23, 2024. The interest rate under the term loan is adjustable based on a pricing grid from 0.85% to 1.65%, dependent on our current senior unsecured credit rating. On June 27, 2019, we entered into an interest rate swap transaction (effective July 3, 2019) to fix the interest rate to approximately 1.20% for the duration of the loan. The current applicable margin for the pricing grid (which can vary based on our credit rating) is 1.25% for an all-in fixed rate of 2.45%. Covenants Our debt facilities impose certain restrictions on us, including restrictions on our ability to: incur debts; create or incur liens; provide guarantees in respect of obligations of any other entity; make redemptions and repurchases of our capital stock; prepay, redeem, or repurchase debt; engage in mergers or consolidations; enter into affiliated transactions; dispose of real estate or other assets; and change our business. In addition, the credit agreements governing our revolving credit (“Credit Facility”) limit the amount of dividends we can pay as a percentage of normalized adjusted funds from operations (“NAFFO”), as defined in the agreements, on a rolling four quarter basis. At September 30, 2020, the dividend restriction was 95% of NAFFO. The indentures governing our senior unsecured notes also limit the amount of dividends we can pay based on the sum of 95% of NAFFO, proceeds of equity issuances and certain other net cash proceeds. Finally, our senior unsecured notes require us to maintain total unencumbered assets (as defined in the related indenture) of not less than 150% of our unsecured indebtedness. In addition to these restrictions, the Credit Facility contains customary financial and operating covenants, including covenants relating to our total leverage ratio, fixed charge coverage ratio, secured leverage ratio, consolidated adjusted net worth, unsecured leverage ratio, and unsecured interest coverage ratio. This Credit Facility also contains customary events of default, including among others, nonpayment of principal or interest, material inaccuracy of representations, and failure to comply with our covenants. If an event of default occurs and is continuing under the Credit Facility, the entire outstanding balance may become immediately due and payable. At September 30, 2020 , we were in compliance with all such financial and operating covenants. |
Common Stock_Partner's Capital
Common Stock/Partner's Capital | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Common Stock/Partner's Capital | 5. Common Stock/Partners’ Capital Medical Properties Trust, Inc. In the first nine months of 2020, we sold 15.4 million shares of common stock under our at-the-market equity offering program, resulting in net proceeds of approximately $294 million; while, in the first nine months of 2019, we sold 36.1 million shares of common stock under our at-the-market equity offering program, resulting in net proceeds of approximately $649 million. Subsequent to September 30, 2020, we sold an additional 0.3 million shares of common stock under our at-the-market equity offering program, resulting in net proceeds of approximately $5 million. On July 18, 2019, we completed an underwritten public offering of 51.75 million shares (including the exercise of the underwriters’ 30-day option to purchase an additional 6.75 million shares) of our common stock, resulting in net proceeds of $858.1 million, after deducting underwriting discounts and commissions and estimated offering expenses. MPT Operating Partnership, L.P. At September 30, 2020, the company has a 99.9% ownership interest in the Operating Partnership, with the remainder owned by two other partners, who are employees. During the nine months ended September 30, 2020 and 2019, the Operating Partnership issued approximately 15.4 million and 87.9 million units, respectively, in direct response to the common stock offerings by Medical Properties Trust, Inc. during the same periods. |
Stock Awards
Stock Awards | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Awards | 6. Stock Awards We adopted the 2019 Equity Incentive Plan (the “Equity Incentive Plan”) during the second quarter of 2019, which authorizes the issuance of common stock options, restricted stock, restricted stock units, deferred stock units, stock appreciation rights, performance units, and other stock-based awards. The Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors, and we have reserved 12.9 million shares of common stock for awards, out of which 8.4 million shares remain available for future stock awards as of September 30, 2020. Share-based compensation expense totaled $34.6 million and $22.1 million for the nine months ended September 30, 2020 and 2019, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 7. Fair Value of Financial Instruments We have various assets and liabilities that are considered financial instruments. We estimate that the carrying value of cash and cash equivalents and accounts payable and accrued expenses approximate their fair values. We estimate the fair value of our interest and rent receivables using Level 2 inputs such as discounting the estimated future cash flows using the current rates at which similar receivables would be made to others with similar credit ratings and for the same remaining maturities. The fair value of our mortgage loans and other loans are estimated by using Level 2 inputs such as discounting the estimated future cash flows using the current rates which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. We determine the fair value of our senior unsecured notes using Level 2 inputs such as quotes from securities dealers and market makers. We estimate the fair value of our revolving credit facility and term loans using Level 2 inputs based on the present value of future payments, discounted at a rate which we consider appropriate for such debt. Fair value estimates are made at a specific point in time, are subjective in nature, and involve uncertainties and matters of significant judgment. Settlement of such fair value amounts may not be a prudent management decision. The following table summarizes fair value estimates for our financial instruments (in thousands): As of As of September 30, 2020 December 31, 2019 Asset (Liability) Book Value Fair Value Book Value Fair Value Interest and rent receivables $ 48,476 $ 47,650 $ 31,357 $ 30,472 Loans(1) 1,186,533 1,195,148 1,704,854 1,742,153 Debt, net (8,190,669 ) (8,369,896 ) (7,023,679 ) (7,331,816 ) (1) Excludes $115 million of mortgage loans related to Ernest and the $205 million acquisition loan to the new international joint venture discussed in Note 3 by discounting the estimated cash flows using the market rates which similar loans would be made to borrowers with similar credit ratings and the same remaining maturities . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 8. Earnings Per Share Medical Properties Trust, Inc. Our earnings per share were calculated based on the following (amounts in thousands): For the Three Months Ended September 30, 2020 2019 Numerator: Net income $ 131,357 $ 90,267 Non-controlling interests’ share in net income (251 ) (481 ) Participating securities’ share in earnings (435 ) (432 ) Net income, less participating securities’ share in earnings $ 130,671 $ 89,354 Denominator: Basic weighted-average common shares 531,095 439,581 Dilutive potential common shares 1,341 1,352 Dilutive weighted-average common shares 532,436 440,933 For the Nine Months Ended September 30, 2020 2019 Numerator: Net income $ 322,166 $ 246,478 Non-controlling interests’ share in net income (600 ) (1,432 ) Participating securities’ share in earnings (1,386 ) (1,354 ) Net income, less participating securities’ share in earnings $ 320,180 $ 243,692 Denominator: Basic weighted-average common shares 526,651 404,902 Dilutive potential common shares 1,181 1,198 Dilutive weighted-average common shares 527,832 406,100 MPT Operating Partnership, L.P. Our earnings per common unit were calculated based on the following (amounts in thousands): For the Three Months Ended September 30, 2020 2019 Numerator: Net income $ 131,357 $ 90,267 Non-controlling interests’ share in net income (251 ) (481 ) Participating securities’ share in earnings (435 ) (432 ) Net income, less participating securities’ share in earnings $ 130,671 $ 89,354 Denominator: Basic weighted-average units 531,095 439,581 Dilutive potential units 1,341 1,352 Diluted weighted-average units 532,436 440,933 For the Nine Months Ended September 30, 2020 2019 Numerator: Net income $ 322,166 $ 246,478 Non-controlling interests’ share in net income (600 ) (1,432 ) Participating securities’ share in earnings (1,386 ) (1,354 ) Net income, less participating securities’ share in earnings $ 320,180 $ 243,692 Denominator: Basic weighted-average units 526,651 404,902 Dilutive potential units 1,181 1,198 Diluted weighted-average units 527,832 406,100 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Commitments We agreed to invest in three general acute care facilities in Colombia for approximately $135 million. These facilities are expected to be operated by the new international joint venture discussed in Note 3 . Closing and funding of this transaction is expected during the 2020 fourth quarter. Contingencies We are a party to various legal proceedings incidental to our business. In the opinion of management, after consultation with legal counsel, the ultimate liability, if any, with respect to those proceedings is not presently expected to materially affect our financial position, results of operations, or cash flows. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events Subsequent to September 30, 2020, we received approximately $300 million in loan principal prepayments, the majority of which came from Prime to payoff certain 2022 mortgage loans. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Unaudited Interim Condensed Consolidated Financial Statements | Unaudited Interim Condensed Consolidated Financial Statements : The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information, including rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. Operating results for the three and nine months ended September 30, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The condensed consolidated balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. The preparation of our consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. During the first nine months of 2020, the global outbreak of a novel coronavirus, or COVID-19, has spread all over the world including countries where we own and lease facilities. The World Health Organization designated COVID-19 as a pandemic, and numerous countries, including the U.S., declared national emergencies with respect to COVID-19. As the global impact of the outbreak evolved, many countries reacted by instituting quarantines and restrictions on travel, closing financial markets and/or restricting trade- including requiring medically necessary elective surgeries at hospitals to be deferred. Although hospitals are back accepting patients and performing medically necessary elective surgeries, many of these trade restrictions are still in place. We believe the estimates and assumptions underlying our consolidated financial statements are reasonable and supportable based on the information available as of September 30, 2020 (particularly as it relates to our assessments of the recoverability of our real estate and the adequacy of our credit loss reserves on loans and financing receivables). However, the ultimate impact to our tenants’ results of operations and liquidity and their ability to pay our rent and interest due to the impact of COVID-19 cannot be predicted with 100% confidence, particularly given we are still learning the full scope, severity, and duration of the pandemic and the actions needed to contain the pandemic or mitigate its impact. This makes any estimates and assumptions as of September 30, 2020 inherently less certain than they would be absent the potential impact of COVID-19. Actual results may ultimately differ from our estimates. For information about significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019 . There have been no material changes to these significant accounting po licies other than the following: On January 1, 2020, we adopted Accounting Standards Update (“ASU”) No. 2016-13, “Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). This standard requires a new forward-looking “expected loss” model measured over the contractual life of an asset that considers forecasts of future economic conditions, as well as past and current events, to be used for our financing receivables, including financing leases and loans, which the Financial Accounting Standards Board believes will result in more timely recognition of such losses. Additionally, we have made the accounting policy election to exclude interest receivables from the credit loss reserve analysis and will continue to timely reserve or write-off such short-term receivables. Pursuant to ASU 2016-13, we grouped our financial instruments into two primary pools of similar credit risk: secured and unsecured. The secured instruments include investment in financing leases and mortgage loans, as all are secured by the underlying real estate among other collateral. The unsecured instruments include acquisition, working capital, and shareholder loans. Within these two major pools, we further grouped our instruments into sub-pools based on several tenant/borrower characteristics, including years of experience in the healthcare industry and in a particular market or region and overall capitalization. We then determined a credit loss percentage per pool based on our history of credit losses incurred on similar instruments. We used an historical period of time in determining such loss rates that closely matches the remaining terms of the financial instruments being analyzed in the respective pools, since our underwriting process has been consistent over this time. Finally, we made specific modifications for current trends, as appropriate. Upon adoption of this standard, we recorded a credit loss reserve of $8.4 million with the effect recorded in equity as a cumulative effect of a change in accounting principle. |
Reclassifications | Reclassifications Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform to the current period presentation. |
Real Estate and Lending Activ_2
Real Estate and Lending Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
Net Assets Acquired | We acquired or invested in the following net assets (in thousands): For the Nine Months Ended September 30, 2020 2019 Land and land improvements $ 330,941 $ 375,721 Buildings 2,610,197 1,320,449 Intangible lease assets — subject to amortization (weighted average useful life 27.6 years for 2020 and 18.7 years for 2019) 364,006 149,201 Investment in financing leases — 1,386,797 Equity investments — 284,399 Mortgage loans 47,641 51,267 Other loans and assets 306,328 135,258 Liabilities assumed (134,203 ) — Total assets acquired $ 3,524,910 $ 3,703,092 Loans repaid(1) (737,242 ) — Total net assets acquired $ 2,787,668 $ 3,703,092 (1) The 2020 column includes $737 million of loans advanced to Steward Health Care, Inc. (“Steward”) in 2017 and exchanged for the fee simple real estate of two hospitals as described below. |
Summary of Status on Current Development Projects | See table below for a status update on our current development projects (in thousands): Property Commitment Costs Incurred as of September 30, 2020 Estimated Rent Commencement Date NeuroPsychiatric Hospitals (Houston, Texas) $ 27,500 $ 20,241 2Q 2021 Ernest (Bakersfield, California) 47,929 16,010 4Q 2021 $ 75,429 $ 36,251 |
Components of Total Investment in Financing Leases | The components of our total investment in financing leases consisted of the following (in thousands): As of September 30, 2020 As of December 31, 2019 Minimum lease payments receivable $ 1,838,490 $ 1,884,921 Estimated residual values 394,195 394,195 Less: Unearned income and allowance for credit loss (1,566,655 ) (1,618,252 ) Net investment in direct financing leases 666,030 660,864 Other financing leases (net of allowance for credit loss) 1,423,189 1,399,438 Total investment in financing leases $ 2,089,219 $ 2,060,302 |
Summary of Loans (Net of Allowance for Credit Loss) | The following is a summary of our loans (net of allowance for credit loss in 2020): (in thousands) As of September 30, 2020 As of December 31, 2019 Mortgage loans $ 602,479 $ 1,275,022 Acquisition loans 334,281 123,893 Other loans 576,186 420,939 Total $ 1,512,946 $ 1,819,854 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following is a summary of debt (dollar amounts in thousands): As of September 30, 2020 As of December 31, 2019 Revolving credit facility $ 225,000 $ — Term loan 200,000 200,000 British pound sterling term loan(A) 904,400 — Australian term loan facility(A) 859,440 842,520 4.000% Senior Unsecured Notes due 2022(A) 586,050 560,650 2.550% Senior Unsecured Notes due 2023(A) 516,800 530,280 5.500% Senior Unsecured Notes due 2024 300,000 300,000 6.375% Senior Unsecured Notes due 2024 500,000 500,000 3.325% Senior Unsecured Notes due 2025(A) 586,050 560,650 5.250% Senior Unsecured Notes due 2026 500,000 500,000 5.000% Senior Unsecured Notes due 2027 1,400,000 1,400,000 3.692% Senior Unsecured Notes due 2028(A) 775,200 795,420 4.625% Senior Unsecured Notes due 2029 900,000 900,000 $ 8,252,940 $ 7,089,520 Debt issue costs and discount, net (62,271 ) (65,841 ) $ 8,190,669 $ 7,023,679 (A) Non-U.S. dollar denominated debt that reflects the exchange rate at September 30, 2020 and December 31, 2019, respectively. |
Principal Payments Due on Debt | As of September 30, 2020, principal payments due on our debt (which exclude the effects of any discounts, premiums, or debt issue costs recorded) are as follows (in thousands): 2020 $ — 2021 225,000 2022 786,050 2023 516,800 2024 1,659,440 Thereafter 5,065,650 Total $ 8,252,940 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Information of Financial Instruments | The following table summarizes fair value estimates for our financial instruments (in thousands): As of As of September 30, 2020 December 31, 2019 Asset (Liability) Book Value Fair Value Book Value Fair Value Interest and rent receivables $ 48,476 $ 47,650 $ 31,357 $ 30,472 Loans(1) 1,186,533 1,195,148 1,704,854 1,742,153 Debt, net (8,190,669 ) (8,369,896 ) (7,023,679 ) (7,331,816 ) (1) Excludes $115 million of mortgage loans related to Ernest and the $205 million acquisition loan to the new international joint venture discussed in Note 3 by discounting the estimated cash flows using the market rates which similar loans would be made to borrowers with similar credit ratings and the same remaining maturities . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | Medical Properties Trust, Inc. Our earnings per share were calculated based on the following (amounts in thousands): For the Three Months Ended September 30, 2020 2019 Numerator: Net income $ 131,357 $ 90,267 Non-controlling interests’ share in net income (251 ) (481 ) Participating securities’ share in earnings (435 ) (432 ) Net income, less participating securities’ share in earnings $ 130,671 $ 89,354 Denominator: Basic weighted-average common shares 531,095 439,581 Dilutive potential common shares 1,341 1,352 Dilutive weighted-average common shares 532,436 440,933 For the Nine Months Ended September 30, 2020 2019 Numerator: Net income $ 322,166 $ 246,478 Non-controlling interests’ share in net income (600 ) (1,432 ) Participating securities’ share in earnings (1,386 ) (1,354 ) Net income, less participating securities’ share in earnings $ 320,180 $ 243,692 Denominator: Basic weighted-average common shares 526,651 404,902 Dilutive potential common shares 1,181 1,198 Dilutive weighted-average common shares 527,832 406,100 MPT Operating Partnership, L.P. Our earnings per common unit were calculated based on the following (amounts in thousands): For the Three Months Ended September 30, 2020 2019 Numerator: Net income $ 131,357 $ 90,267 Non-controlling interests’ share in net income (251 ) (481 ) Participating securities’ share in earnings (435 ) (432 ) Net income, less participating securities’ share in earnings $ 130,671 $ 89,354 Denominator: Basic weighted-average units 531,095 439,581 Dilutive potential units 1,341 1,352 Diluted weighted-average units 532,436 440,933 For the Nine Months Ended September 30, 2020 2019 Numerator: Net income $ 322,166 $ 246,478 Non-controlling interests’ share in net income (600 ) (1,432 ) Participating securities’ share in earnings (1,386 ) (1,354 ) Net income, less participating securities’ share in earnings $ 320,180 $ 243,692 Denominator: Basic weighted-average units 526,651 404,902 Dilutive potential units 1,181 1,198 Diluted weighted-average units 527,832 406,100 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Sep. 30, 2020FacilityStateCountry |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of facilities | Facility | 385 |
Number of states | State | 33 |
Number of countries | Country | 6 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | Jan. 01, 2020USD ($) |
ASU 2016-13 [Member] | |
Credit loss reserve expected | $ 8.4 |
Real Estate and Lending Activ_3
Real Estate and Lending Activities - Net Assets Acquired (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | |||
Total assets acquired | $ 3,524,910 | $ 3,703,092 | |
Liabilities assumed | (134,203) | ||
Loans repaid | [1] | (737,242) | |
Total net assets acquired | 2,787,668 | 3,703,092 | |
Land and Land Improvements [Member] | |||
Business Acquisition [Line Items] | |||
Total assets acquired | 330,941 | 375,721 | |
Building [Member] | |||
Business Acquisition [Line Items] | |||
Total assets acquired | 2,610,197 | 1,320,449 | |
Intangible Lease Assets - Subject to Amortization [Member] | |||
Business Acquisition [Line Items] | |||
Total assets acquired | 364,006 | 149,201 | |
Investments in Financing Leases [Member] | |||
Business Acquisition [Line Items] | |||
Total assets acquired | 1,386,797 | ||
Mortgage Loans [Member] | |||
Business Acquisition [Line Items] | |||
Total assets acquired | 47,641 | 51,267 | |
Equity Investments [Member] | |||
Business Acquisition [Line Items] | |||
Total assets acquired | 284,399 | ||
Other Loans and Assets [Member] | |||
Business Acquisition [Line Items] | |||
Total assets acquired | $ 306,328 | $ 135,258 | |
[1] | The 2020 column includes $737 million of loans advanced to Steward Health Care, Inc. (“Steward”) in 2017 and exchanged for the fee simple real estate of two hospitals as described below. |
Real Estate and Lending Activ_4
Real Estate and Lending Activities - Net Assets Acquired (Parenthetical) (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Business Acquisition [Line Items] | |||
Loans repaid | [1] | $ 737,242 | |
Steward [Member] | |||
Business Acquisition [Line Items] | |||
Loans repaid | $ 737,000 | ||
Intangible Lease Assets - Subject to Amortization [Member] | |||
Business Acquisition [Line Items] | |||
Weighted-average useful life of acquired intangible lease assets (in years) | 27 years 7 months 6 days | 18 years 8 months 12 days | |
[1] | The 2020 column includes $737 million of loans advanced to Steward Health Care, Inc. (“Steward”) in 2017 and exchanged for the fee simple real estate of two hospitals as described below. |
Real Estate and Lending Activ_5
Real Estate and Lending Activities - 2020 Activity - Additional Information (Detail) $ in Thousands, € in Millions, £ in Millions, SFr in Millions | Aug. 13, 2020USD ($) | Aug. 07, 2020GBP (£) | Aug. 05, 2020EUR (€) | Jul. 08, 2020USD ($)Hospital | Apr. 29, 2020RenewalOption | Jan. 08, 2020GBP (£)Hospital | Sep. 30, 2020USD ($)Hospital | Jun. 24, 2020CHF (SFr) | May 13, 2020USD ($) | Sep. 30, 2019USD ($) |
Business Acquisition [Line Items] | ||||||||||
Term of lease extension, years | 5 years | |||||||||
Acquisition loan | $ | $ 3,524,910 | $ 3,703,092 | ||||||||
Joint Venture Partner [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership interest | 49.00% | |||||||||
Other Loans [Member] | Joint Venture Partner [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition loan | $ | $ 205,000 | |||||||||
Swiss Healthcare Real Estate Company Infracore S A [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Secured loan | SFr | SFr 45 | |||||||||
Utah [Member] | Steward [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of facilities acquired | 2 | |||||||||
Purchase price of acquisition | $ | $ 200,000 | |||||||||
Utah [Member] | Steward [Member] | Davis and Jordan Valley Facilities [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net investment in lease | $ | $ 950,000 | |||||||||
Acute Care Hospital [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of facilities acquired | 2 | |||||||||
Acute Care Hospital [Member] | United Kingdom [Member] | BMI [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of facilities acquired | 30 | |||||||||
Purchase price of acquisition | £ | £ 1,500 | |||||||||
Number of leased properties | 52 | |||||||||
Initial fixed term of lease | 2050 | |||||||||
Existence of option to extend | true | false | ||||||||
Number of lease extension options | RenewalOption | 2 | |||||||||
Term of lease extension, years | 5 years | |||||||||
Lease extension options, description | two five-year renewal options | |||||||||
Acute Care Hospital [Member] | California [Member] | Prime Healthcare Services [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price of acquisition | $ | $ 300,000 | |||||||||
Acute Care Hospital [Member] | Darlington, United Kingdom [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of facilities acquired | 1 | |||||||||
Purchase price of acquisition | £ | £ 29.4 | |||||||||
Inpatient Rehabilitation Hospital [Member] | Dahlen, Germany [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of facilities acquired | 1 | |||||||||
Purchase price of acquisition | € | € 12.5 |
Real Estate and Lending Activ_6
Real Estate and Lending Activities - 2019 Activity - Additional Information (Detail) £ in Millions, SFr in Millions, $ in Millions | Aug. 30, 2019USD ($)RenewalOption | Aug. 23, 2019USD ($)HospitalRenewalOptionHealth_Center | Aug. 16, 2019GBP (£)Hospital | Jun. 28, 2019CHF (SFr) | Jun. 10, 2019USD ($)HospitalRenewalOption | Jun. 06, 2019AUD ($)Hospital | May 27, 2019CHF (SFr)_Campus | Sep. 30, 2020USD ($)Hospital | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||||||||
Mortgage loan balance | $ 1,512,946,000 | $ 1,819,854,000 | |||||||
Term of lease | 15 years | ||||||||
Term of lease extension, years | 5 years | ||||||||
Other Acquisitions [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price of acquisition | $ 135,000,000 | ||||||||
Vibra Healthcare, LLC [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price of acquisition | $ 254,000,000 | ||||||||
Term of lease | 20 years | ||||||||
Number of lease extension options | RenewalOption | 3 | ||||||||
Existence of option to extend | true | ||||||||
Lease extension options, description | three five-year extension options | ||||||||
Term of lease extension, years | 5 years | ||||||||
Ramsay Health Care [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Term of lease | 18 years | ||||||||
Swiss Healthcare Real Estate Company Infracore S A [Member] | Joint Venture Partner [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership interest in joint venture under the equity method | 40.00% | ||||||||
Swiss Healthcare Real Estate Company Infracore S A [Member] | Switzerland [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price of acquisition | SFr | SFr 236.6 | ||||||||
Swiss Medical Network [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted average remaining lease term | 23 years | ||||||||
Aevis Victoria SA [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price of acquisition | SFr | SFr 47 | ||||||||
Ownership interest in joint venture under the cost method | 4.90% | ||||||||
Prospect [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price of acquisition | $ 1,550,000,000 | ||||||||
Term loan | $ 112,900,000 | ||||||||
Additional number of businesses acquired | Hospital | 2 | ||||||||
Term of lease | 15 years | ||||||||
Number of lease extension options | RenewalOption | 3 | ||||||||
Existence of option to extend | true | ||||||||
Future purchase price adjustment | $ 250,000,000 | ||||||||
Performance thresholds achievement period | 3 years | ||||||||
Prospect [Member] | Investment in Financing Leases [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price of acquisition | $ 1,400,000,000 | ||||||||
Secure Income REIT [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price of acquisition | £ | £ 347 | ||||||||
Secure Income REIT [Member] | United Kingdom [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of private hospitals acquired | Hospital | 8 | ||||||||
Acute Care Campus [Member] | Swiss Healthcare Real Estate Company Infracore S A [Member] | Switzerland [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of facilities acquired | _Campus | 13 | ||||||||
Acute Care Campus [Member] | Prospect [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of facilities acquired | Hospital | 14 | ||||||||
Acute Care Campus [Member] | Prospect [Member] | Investment in Financing Leases [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of facilities acquired | Hospital | 11 | ||||||||
Behavioral Health Care Facility [Member] | Prospect [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of facilities acquired | Health_Center | 2 | ||||||||
Behavioral Health Care Facility [Member] | Prospect [Member] | Investment in Financing Leases [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of facilities acquired | Health_Center | 2 | ||||||||
Acute Care Hospital [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of facilities acquired | Hospital | 2 | ||||||||
Acute Care Hospital [Member] | Poole, England [Member] | Other Acquisitions [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of facilities acquired | Hospital | 3 | ||||||||
Acute Care Hospital [Member] | Prospect [Member] | Mortgage Loans [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Mortgage loan balance | $ 51,300,000 | ||||||||
Community Hospital [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of facilities acquired | Hospital | 7 | ||||||||
Number of lease extension options | RenewalOption | 2 | ||||||||
Term of lease extension, years | 5 years | ||||||||
Leases fixed escalations | 5 years | ||||||||
Lease extension options, description | two five-year extension options | ||||||||
Existence of option to extend | true | ||||||||
Community Hospital [Member] | Kansas [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of facilities acquired | Hospital | 7 | ||||||||
Purchase price of acquisition | $ 145,400,000 | ||||||||
Community Hospital [Member] | Saint Luke's Health System [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Term of lease | 14 years | ||||||||
Hospital [Member] | Australia [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of facilities acquired | Hospital | 11 | ||||||||
Purchase price of acquisition | $ 1,200 | ||||||||
Stamp duties and registration fees | $ 66.6 | ||||||||
Hospital [Member] | Healthscope Limited [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Term of lease | 20 years | ||||||||
Additional Properties [Member] | Swiss Healthcare Real Estate Company Infracore S A [Member] | Switzerland [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of facilities acquired | _Campus | 2 | ||||||||
Inpatient Rehabilitation Hospital [Member] | Germany [Member] | Other Acquisitions [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of facilities acquired | Hospital | 1 |
Real Estate and Lending Activ_7
Real Estate and Lending Activities - Development Activities - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2020Hospital | Sep. 30, 2020USD ($)Hospital | May 15, 2020USD ($) | |
Business Acquisition [Line Items] | |||
Commence rent in fourth quarter of 2021 | $ | $ 75,429 | ||
Acute Care Hospital [Member] | |||
Business Acquisition [Line Items] | |||
Number of facilities acquired | 2 | ||
Ernest [Member] | Development Activities [Member] | |||
Business Acquisition [Line Items] | |||
Commence rent in fourth quarter of 2021 | $ | $ 47,900 | ||
Circle [Member] | Development Activities [Member] | Birmingham, England [Member] | |||
Business Acquisition [Line Items] | |||
Number of facilities acquired | 2 | ||
Circle [Member] | Development Activities [Member] | Acute Care Hospital [Member] | Birmingham, England [Member] | |||
Business Acquisition [Line Items] | |||
Number of facilities acquired | 1 | ||
Circle [Member] | Development Activities [Member] | Inpatient Rehabilitation Hospital [Member] | Birmingham, England [Member] | |||
Business Acquisition [Line Items] | |||
Number of facilities acquired | 1 |
Real Estate and Lending Activ_8
Real Estate and Lending Activities - Summary of Status on Current Development Projects (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Business Acquisition [Line Items] | |
Commitment | $ 75,429 |
Costs Incurred as of September 30, 2020 | 36,251 |
NeuroPsychiatric Hospitals [Member] | Houston, Texas [Member] | |
Business Acquisition [Line Items] | |
Commitment | 27,500 |
Costs Incurred as of September 30, 2020 | $ 20,241 |
Estimated Rent Commencement Date | 2Q 2021 |
Ernest [Member] | Bakersfield, California [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 47,929 |
Costs Incurred as of September 30, 2020 | $ 16,010 |
Estimated Rent Commencement Date | 4Q 2021 |
Real Estate and Lending Activ_9
Real Estate and Lending Activities - Disposals - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)FacilityProperty | |
Business Combinations [Abstract] | |
Number of facilities sold | Facility | 9 |
Number of properties sold | Property | 6 |
Proceeds from sale of facilities | $ 93 |
Net loss on real estate dispositions | $ 2.7 |
Real Estate and Lending Acti_10
Real Estate and Lending Activities - Leasing Operations (Lessor) - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)PropertyLease | |
Lessor Lease Description [Line Items] | |
Term of lease | 15 years |
Lease renewal term | 5 years |
Annual rent escalations | 97.00% |
Number of properties | Property | 5 |
Carrying value of lease requiring residual value guarantee | $ | $ 229 |
Ernest [Member] | |
Lessor Lease Description [Line Items] | |
Number of direct financing leases | 14 |
Prime Facilities [Member] | |
Lessor Lease Description [Line Items] | |
Number of direct financing leases | 10 |
Prospect [Member] | |
Lessor Lease Description [Line Items] | |
Number of financing leases | 13 |
Minimum [Member] | |
Lessor Lease Description [Line Items] | |
Fixed minimum annual escalations | 0.50% |
Maximum [Member] | |
Lessor Lease Description [Line Items] | |
Fixed minimum annual escalations | 3.00% |
Real Estate and Lending Acti_11
Real Estate and Lending Activities - Components of Total Investment in Financing Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Direct Financing Lease Net Investment In Leases [Abstract] | ||
Minimum lease payments receivable | $ 1,838,490 | $ 1,884,921 |
Estimated residual values | 394,195 | 394,195 |
Less: Unearned income and allowance for credit loss | (1,566,655) | (1,618,252) |
Net investment in direct financing leases | 666,030 | 660,864 |
Other financing leases (net of allowance for credit loss) | 1,423,189 | 1,399,438 |
Total investment in financing leases | $ 2,089,219 | $ 2,060,302 |
Real Estate and Lending Acti_12
Real Estate and Lending Activities - Rent Deferrals - Additional Information (Detail) - COVID-19 Pandemic [Member] $ in Millions | Sep. 30, 2020USD ($) |
Business Acquisition [Line Items] | |
Deferred lease income | $ 13 |
Percentage of deferred revenue lease | 2.00% |
Real Estate and Lending Acti_13
Real Estate and Lending Activities - Adeptus Health Transition Properties - Additional Information (Detail) - Adeptus Health [Member] $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020Property | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($)Facility | |
Business Acquisition [Line Items] | |||
Number of facilities sever decline in operating results | Facility | 20 | ||
Straight-line rent and other write-off, net of tax | $ 20 | ||
Proceeds from lease payments | $ 9 | ||
Real estate impairment charge | $ 9.9 | ||
TEXAS | |||
Business Acquisition [Line Items] | |||
Number of re-leased properties | Property | 2 | ||
Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of vacant on leased property | 1.00% | 1.00% | |
Acute Care Hospital [Member] | |||
Business Acquisition [Line Items] | |||
Number of facilities sever decline in operating results | Facility | 1 |
Real Estate and Lending Acti_14
Real Estate and Lending Activities - Alecto Facilities - Additional Information (Detail) - Alecto Healthcare Services [Member] $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2020Property | Mar. 31, 2020USD ($) | Sep. 30, 2020Property | |
Business Acquisition [Line Items] | |||
Number of leased properties | 1 | ||
Number of re-leased properties | 1 | ||
Real estate impairment charge | $ | $ 9.1 | ||
Total Gross Assets [Member] | Customer Concentration Risk [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of total assets | 1.00% |
Real Estate and Lending Acti_15
Real Estate and Lending Activities - Other Leasing Activity - Additional Information (Detail) - Methodist [Member] - TEXAS $ in Thousands | Jul. 24, 2020USD ($)Property | Sep. 30, 2020USD ($) |
Business Acquisition [Line Items] | ||
Total investments | $ 30 | |
Number of re-leased properties | Property | 5 | |
Straight-line rent and other write-off, net of tax | $ 1,500 |
Real Estate and Lending Acti_16
Real Estate and Lending Activities - Summary of Loans (Net of Allowance for Credit Loss) (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Business Combinations [Abstract] | ||
Mortgage loans | $ 602,479 | $ 1,275,022 |
Acquisition loans | 334,281 | 123,893 |
Other loans | 576,186 | 420,939 |
Total | $ 1,512,946 | $ 1,819,854 |
Real Estate and Lending Acti_17
Real Estate and Lending Activities - Loans - Additional Information (Detail) $ in Thousands, € in Millions | 9 Months Ended | ||
Sep. 30, 2020USD ($)Hospital | Sep. 30, 2020EUR (€) | Dec. 31, 2019USD ($) | |
Loans [Line Items] | |||
Acquisition loan | $ 334,281 | $ 123,893 | |
Primotop Holdings S.a.r.l. [Member] | |||
Loans [Line Items] | |||
Shareholder loan to joint venture | € | € 290 | ||
Joint Venture Partner [Member] | |||
Loans [Line Items] | |||
Acquisition loan | $ 205,000 | ||
Acute Care Hospital [Member] | |||
Loans [Line Items] | |||
Number of facilities acquired | Hospital | 2 |
Real Estate and Lending Acti_18
Real Estate and Lending Activities - Concentration of Credit Risks and Related Party Transactions - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Total Gross Assets [Member] | Geographic Concentration [Member] | U.S. [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of concentration risk | 70.00% | 74.00% | |
Total Gross Assets [Member] | Geographic Concentration [Member] | Europe [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of concentration risk | 25.00% | 20.00% | |
Total Gross Assets [Member] | Geographic Concentration [Member] | Australia [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of concentration risk | 5.00% | 6.00% | |
Revenue [Member] | Customer Concentration Risk [Member] | General Acute Care Hospital and Healthcare System [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of concentration risk | 89.00% | ||
Revenue [Member] | Customer Concentration Risk [Member] | Rehabilitation Hospital with Covenant Health System [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of concentration risk | 8.00% | ||
Revenue [Member] | Customer Concentration Risk [Member] | Long-term Acute Care Hospital [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of concentration risk | 3.00% | ||
Revenue [Member] | Credit Concentration Risk [Member] | Steward [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of concentration risk | 30.00% | 44.00% | |
Revenue [Member] | Credit Concentration Risk [Member] | Circle [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of concentration risk | 13.00% | ||
Revenue [Member] | Credit Concentration Risk [Member] | Prospect [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of concentration risk | 13.00% | ||
Revenue [Member] | Credit Concentration Risk [Member] | Prime Healthcare Services [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of concentration risk | 11.00% | 16.00% | |
Revenue [Member] | Credit Concentration Risk [Member] | Prospect and Circle [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of concentration risk | 4.00% | ||
Pro Forma [Member] | Total Gross Assets [Member] | Customer Concentration Risk [Member] | |||
Business Acquisition [Line Items] | |||
Largest percentage of entity's assets invested on single property | 3.00% |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Debt | $ 8,252,940 | $ 7,089,520 | |
Debt issue costs and discount, net | (62,271) | (65,841) | |
Debt, net | 8,190,669 | 7,023,679 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 225,000 | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 200,000 | 200,000 | |
Term Loan [Member] | British Pound Sterling [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 904,400 | |
Term Loan [Member] | Australia [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 859,440 | 842,520 |
4.000% Senior Unsecured Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 586,050 | 560,650 |
2.550% Senior Unsecured Notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 516,800 | 530,280 |
5.500% Senior Unsecured Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 300,000 | 300,000 | |
6.375% Senior Unsecured Notes due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 500,000 | 500,000 | |
3.325% Senior Unsecured Notes Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 586,050 | 560,650 |
5.250% Senior Unsecured Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 500,000 | 500,000 | |
5.000% Senior Unsecured Notes Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 1,400,000 | 1,400,000 | |
3.692% Senior Unsecured Notes due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 775,200 | 795,420 |
4.625% Senior Unsecured Notes Due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Debt | $ 900,000 | $ 900,000 | |
[1] | Non-U.S. dollar denominated debt that reflects the exchange rate at September 30, 2020 and December 31, 2019, respectively. |
Debt - Summary of Debt (Parenth
Debt - Summary of Debt (Parenthetical) (Detail) | Sep. 30, 2020 | Dec. 31, 2019 | Jul. 26, 2019 | |
4.000% Senior Unsecured Notes due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured notes, interest rate | [1] | 4.00% | 4.00% | |
2.550% Senior Unsecured Notes due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured notes, interest rate | [1] | 2.55% | 2.55% | |
5.500% Senior Unsecured Notes Due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured notes, interest rate | 5.50% | 5.50% | ||
6.375% Senior Unsecured Notes due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured notes, interest rate | 6.375% | 6.375% | ||
5.250% Senior Unsecured Notes Due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured notes, interest rate | 5.25% | 5.25% | ||
3.325% Senior Unsecured Notes Due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured notes, interest rate | [1] | 3.325% | 3.325% | |
5.000% Senior Unsecured Notes Due 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured notes, interest rate | 5.00% | 5.00% | ||
3.692% Senior Unsecured Notes due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured notes, interest rate | [1] | 3.692% | 3.692% | |
4.625% Senior Unsecured Notes Due 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured notes, interest rate | 4.625% | 4.625% | 4.625% | |
[1] | Non-U.S. dollar denominated debt that reflects the exchange rate at September 30, 2020 and December 31, 2019, respectively. |
Debt - Principal Payments Due f
Debt - Principal Payments Due for Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 225,000 | |
2022 | 786,050 | |
2023 | 516,800 | |
2024 | 1,659,440 | |
Thereafter | 5,065,650 | |
Total | $ 8,252,940 | $ 7,089,520 |
Debt - British Pound Sterling T
Debt - British Pound Sterling Term Loan - Additional Information (Detail) - Term Loan [Member] - Bank of America, N.A - British Pound Sterling [Member] - EUR (€) | Mar. 04, 2020 | Jan. 06, 2020 | Sep. 30, 2020 |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | € 700,000,000 | ||
Debt instrument maturity date | Jan. 15, 2025 | ||
Debt instrument effective date | Mar. 6, 2020 | ||
Effective interest rate | 0.70% | ||
Senior unsecured notes, interest rate | 1.95% | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Applicable margin adjustable based on pricing grid, percentage | 0.85% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Applicable margin adjustable based on pricing grid, percentage | 1.65% | ||
Credit Rating | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 1.25% |
Deb - 4.625% Senior Unsecured N
Deb - 4.625% Senior Unsecured Notes Due 2029 - Additional Information (Detail) - 4.625% Senior Unsecured Notes Due 2029 [Member] - USD ($) | Jul. 26, 2019 | Jul. 10, 2019 | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Senior unsecured notes face amount | $ 900,000,000 | |||
Senior unsecured notes, interest rate | 4.625% | 4.625% | 4.625% | |
Senior unsecured notes, payable term | Interest on the notes is payable semi-annually on February 1 and August 1 of each year, and commenced on February 1, 2020. | |||
Percentage of par value on senior notes | 99.50% | |||
Debt instrument maturity date | Aug. 1, 2029 | |||
Barclays Bank P L C [Member] | ||||
Debt Instrument [Line Items] | ||||
Underwriting and other fees | $ 4,000,000 |
Debt - Australian Term Loan Fac
Debt - Australian Term Loan Facility - Additional Information (Detail) - Term Loan [Member] - Bank of America, N.A - Australia [Member] - AUD ($) | Jun. 27, 2019 | May 23, 2019 |
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,200,000,000 | |
Debt instrument maturity date | May 23, 2024 | |
Debt instrument effective date | Jul. 3, 2019 | |
Effective interest rate | 1.20% | |
Senior unsecured notes, interest rate | 2.45% | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Applicable margin adjustable based on pricing grid, percentage | 0.85% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Applicable margin adjustable based on pricing grid, percentage | 1.65% | |
Credit Rating | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 1.25% |
Debt - Covenants - Additional I
Debt - Covenants - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Percentage of dividends which could be paid from adjusted operating funds | 95.00% |
Percentage of dividends which could be paid from operation funds | 95.00% |
Maximum percentage of total unencumbered assets | 150.00% |
Common Stock_Partners' Capital
Common Stock/Partners' Capital - Additional Information (Detail) shares in Thousands, $ in Thousands | Nov. 09, 2020USD ($)shares | Jul. 18, 2019USD ($)shares | Sep. 30, 2020shares | Jun. 30, 2020shares | Mar. 31, 2020shares | Sep. 30, 2019shares | Jun. 30, 2019shares | Mar. 31, 2019shares | Sep. 30, 2020USD ($)Employeeshares | Sep. 30, 2019USD ($)shares |
Class Of Stock [Line Items] | ||||||||||
Proceeds from sale of common shares / units, net of offering costs | $ | $ 294,374 | $ 1,507,363 | ||||||||
MPT Operating Partnership, L.P. [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Number of units sold | 15,400 | 87,900 | ||||||||
MPT Operating Partnership, L.P. [Member] | Operating Partnership [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Percentage of ownership limited partner | 99.90% | |||||||||
MPT Operating Partnership, L.P. [Member] | Employee [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Number of partners shared remaining ownership percentage | Employee | 2 | |||||||||
At-the-Market Equity Offering Program [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Proceeds from sale of common shares / units, net of offering costs | $ | $ 294,000 | $ 649,000 | ||||||||
Public Offering [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Proceeds from sale of common shares / units, net of offering costs | $ | $ 858,100 | |||||||||
Shares issued in underwritten public offering | 51,750 | |||||||||
Over-Allotment Option [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Shares issued in underwritten public offering | 6,750 | |||||||||
Subsequent Event [Member] | At-the-Market Equity Offering Program [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Proceeds from sale of common shares / units, net of offering costs | $ | $ 5,000 | |||||||||
Common Par Value [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Number of share sold | 6,745 | 6,017 | 2,601 | 65,235 | 2,467 | 20,147 | ||||
Common Par Value [Member] | At-the-Market Equity Offering Program [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Number of share sold | 15,400 | 36,100 | ||||||||
Common Par Value [Member] | Subsequent Event [Member] | At-the-Market Equity Offering Program [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Number of share sold | 300 |
Stock Awards - Additional Infor
Stock Awards - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share / (Unit)-based compensation expense | $ 34,600 | $ 22,119 |
Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Reserved shares of common stock for awards under the Equity Incentive Plan | 12,900,000 | |
Common stock remaining for future stock awards transferred to the equity incentive plan | 8,400,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Fair Value Information of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Interest and rent receivables, Book value | $ 48,476 | $ 31,357 |
Loans, Book value | 1,186,533 | 1,704,854 |
Debt, net Book value | (8,190,669) | (7,023,679) |
Interest and rent receivables, Fair value | 47,650 | 30,472 |
Loans, Fair value | 1,195,148 | 1,742,153 |
Debt, net Fair value | $ (8,369,896) | $ (7,331,816) |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Summary of Fair Value Information of Financial Instruments (Parenthetical) (Detail) - Fair Value Measurements, Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Mortgage Loans [Member] | ||
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | ||
Fair value | $ 115 | $ 115 |
Book value | 115 | 115 |
Acquisition Loan [Member] | ||
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | ||
Fair value | 205 | 205 |
Book value | $ 205 | $ 205 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Earnings Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Net income | $ 131,357 | $ 109,652 | $ 81,157 | $ 90,267 | $ 79,920 | $ 76,291 | $ 322,166 | $ 246,478 |
Non-controlling interests’ share in net income | (251) | (481) | (600) | (1,432) | ||||
Participating securities’ share in earnings | (435) | (432) | (1,386) | (1,354) | ||||
Net income, less participating securities’ share in earnings | $ 130,671 | $ 89,354 | $ 320,180 | $ 243,692 | ||||
Basic weighted-average common shares | 531,095 | 439,581 | 526,651 | 404,902 | ||||
Dilutive potential common shares | 1,341 | 1,352 | 1,181 | 1,198 | ||||
Dilutive weighted-average common shares | 532,436 | 440,933 | 527,832 | 406,100 | ||||
MPT Operating Partnership, L.P. [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Net income | $ 131,357 | $ 109,652 | $ 81,157 | $ 90,267 | $ 79,920 | $ 76,291 | $ 322,166 | $ 246,478 |
Non-controlling interests’ share in net income | (251) | (481) | (600) | (1,432) | ||||
Participating securities’ share in earnings | (435) | (432) | (1,386) | (1,354) | ||||
Net income, less participating securities’ share in earnings | $ 130,671 | $ 89,354 | $ 320,180 | $ 243,692 | ||||
Basic weighted-average common shares | 531,095 | 439,581 | 526,651 | 404,902 | ||||
Dilutive potential common shares | 1,341 | 1,352 | 1,181 | 1,198 | ||||
Dilutive weighted-average common shares | 532,436 | 440,933 | 527,832 | 406,100 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Acute Care Facilities [Member] - COLOMBIA [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)Facility | |
Commitment And Contingencies [Line Items] | |
Purchase price of acquisition | $ | $ 135 |
Number of leased properties | Facility | 3 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | Nov. 09, 2020USD ($) |
2022 Mortgage Loans [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Loan principal prepayments received | $ 300 |