Unless otherwise indicated, references to "our," "we," and "us" in this
management's discussion and analysis of financial condition and results of
operations refer to Medical Properties Trust, Inc. and its consolidated
subsidiaries, including MPT Operating Partnership, L.P.
Overview
We are a self-advised healthcare REIT that was incorporated in Maryland on
August 27, 2003, primarily for the purpose of investing in and owning net-leased
healthcare facilities. We may also make real estate mortgage loans and other
loans to our tenants. We conduct our business operations in one segment. We
currently have healthcare investments in the U.S., Europe, Australia, and South
America. Our existing tenants are, and our prospective tenants will generally
be, healthcare operating companies and other healthcare providers that use
substantial real estate assets in their operations. We offer financing to these
operators through 100% lease and mortgage financing and generally seek lease and
loan terms on a long-term basis (typically initial fixed terms of at least 15
years) with a series of shorter renewal terms at the option of our tenants and
borrowers. We also have included and intend to include in our lease and loan
agreements annual contractual minimum rate increases. Our existing portfolio's
minimum escalators are typically at least 2.0%. In addition, most of our leases
and loans include rate increases based on the general rate of inflation (based
on CPI or similar indices) if greater than the minimum contractual increases.
Beyond rent or mortgage interest, our leases and loans typically require our
tenants to pay all operating costs and expenses associated with the facility.
Finally, we may acquire a profits or other equity interest in our tenants that
gives us a right to share in the tenant's income or loss.
We may make loans to certain of our operators through our TRSs, which the
operators use for acquisitions and working capital. We consider our lending
business an important element of our overall business strategy for two primary
reasons: (1) it provides opportunities to make income-earning investments that
yield attractive risk-adjusted returns in an industry in which our management
has expertise, and (2) by making debt capital available to certain qualified
operators, we believe we create a competitive advantage for our company over
other buyers of, and financing sources for, healthcare facilities.
Finally, we may also acquire a profits or other equity interest in certain of
our tenants that gives us a right to share in such tenant's profits and losses.
At December 31, 2021, our portfolio (including real estate assets in joint
ventures) consisted of 438 properties leased or loaned to 53 operators, of which
three were under development and five were in the form of mortgage loans.
The information set forth in this Item 7 is intended to provide readers with an
understanding of our financial condition, changes in financial condition, and
results of operations. This section generally discusses the results of our
operations for the year ended December 31, 2021 compared to the year ended
December 31, 2020. For a discussion of the year ended December 31, 2020 compared
to the year ended December 31, 2019, please refer to Item 7 of our Annual Report
on Form 10-K for the year ended December 31, 2020, filed with the SEC on March
1, 2021.
38
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses