Medical Properties Trust, Inc. Reports Third Quarter Results and Other Updates

Continues Scheduled Increase in Cash Rents from New Operators

Announces $150 Million Strategic Common Stock Repurchase Program

Medical Properties Trust, Inc. (the "Company" or "MPT") (NYSE:MPW) today announced financial and operating results for the third quarter ended September 30, 2025, as well as certain events occurring subsequent to quarter end.

• Net loss of ($0.13) and Normalized Funds from Operations ("NFFO") of $0.13 for the 2025 third quarter on a per share basis. Third quarter net loss includes approximately $82 million ($0.14 per share) in impairment charges primarily related to certain Prospect Medical Group ("Prospect") bankruptcy transactions;
• Cash rents from MPT's new tenants are fully current through October with the exception of three facilities in Ohio and Pennsylvania (96% of scheduled rents collected). Including approximately $4 million of September rent received on October 1 from a cash-basis tenant, cash collections increased as expected to $16 million in the third quarter versus $11 million in the second quarter; cash collections for the fourth quarter of 2025 (not including the September rent collected on October 1) approximate $22 million;
• Subsequent to Prospect's August agreement to sell its California operations to NOR Healthcare Systems Corp. ("NOR"), MPT agreed in principle to a lease with NOR which is expected to result in stabilized annual cash rent of $45 million, provided that regulatory approvals are received;
• Entered into a settlement with Prospect and Yale New Haven Health System ("Yale") in September under which $45 million in cash from Yale, proceeds from the sale of three Connecticut hospitals and other consideration are expected to exceed MPT's current debtor-in-possession ("DIP") loan balance;
• Sold two facilities in Arizona in August with nominal annual cash rent for approximately $50 million; and
• Paid a regular quarterly dividend of $0.08 per share in October.

Edward K. Aldag, Jr., Chairman, President and Chief Executive Officer, said, "Our recently transitioned portfolio continues to ramp cash rents as expected. Following the successful re-tenanting of our California hospitals, we have increased confidence that pro rata annualized cash rent from our current portfolio will exceed $1 billion by the end of 2026."

The Company also today announced that its board of directors has authorized a program to strategically repurchase up to $150 million of its common stock. Aldag commented, "With cash rents ramping and increased opportunities to turn low-yielding assets into cash, we have growing flexibility to address our near-term debt maturities. With the added expectation for near-term recoveries from Prospect, we feel comfortable with our liquidity and believe strongly that MPT stock is one of the best investments we can make."

Included in the financial tables accompanying this press release is information about the Company's assets and liabilities, operating results, and reconciliations of net loss to NFFO, including per share amounts, all on a basis comparable to 2024 results.

PORTFOLIO UPDATE

Medical Properties Trust has total assets of approximately $14.9 billion, including $9.0 billion of general acute facilities, $2.5 billion of behavioral health facilities and $1.6 billion of post-acute facilities. As of September 30, 2025, MPT's portfolio included 388 properties and approximately 39,000 licensed beds leased to or mortgaged by 51 hospital operating companies across the United States as well as in the United Kingdom, Switzerland, Germany, Spain, Finland, Colombia, Italy and Portugal.

In Europe, admissions, reimbursement and acuity trends remain strong. Despite an adverse impact on referrals to private behavioral care providers due to recent NHS restructuring in the United Kingdom, Priory's and MPT's overall behavioral health portfolios maintained healthy TTM EBITDARM coverage.

In the United States, general acute care providers continue to report increasing admissions and TTM EBITDARM coverage year-over-year. In post-acute care settings, operators are driving strong revenue growth while effectively managing contract labor expenses, resulting in a slight year-over-year increase in TTM EBITDARM coverage.

The new tenants to which MPT has transferred the operations of properties in Florida, Texas, Arizona, and Louisiana continue to report improving performance trends as they ramp up operations. MPT has collected materially all cash rent owed by these tenants through October with the exception of the previously disclosed Ohio facilities, one of which has re-opened with rent expected to resume in 2026, and one open Pennsylvania hospital that owes a nominal amount of rent.

Prospect's in-court restructuring process which commenced in January 2025 remains underway. In March 2025, the Bankruptcy Court approved a settlement agreement between MPT, Prospect and certain other parties that will enable Prospect to sell its hospital operations and the related real estate with MPT's cooperation. MPT expects NOR's successful bid for Prospect's California operations, which remains subject to regulatory approval, to close by the end of 2025 and result in 50% payments of stabilized annual cash rent of approximately $45 million after a six-month period and full payment of rents at this level after twelve months.

Further, the Company's settlement with Prospect and Yale related to three Connecticut hospitals, as well as the expected sale of the hospitals (two of which are subject to binding purchase agreements), are expected to result in proceeds exceeding MPT's current DIP loan balance of approximately $100 million. The only remaining potential DIP commitment is a conditional loan of up to $30 million secured by assets including proceeds of causes of action.

OPERATING RESULTS

Net loss for the third quarter ended September 30, 2025 was ($78 million) (($0.13) per share), compared to a net loss of ($801 million) (($1.34) per share) in the year earlier period.

NFFO for the third quarter ended September 30, 2025 was $77 million ($0.13 per share), compared to $94 million ($0.16 per share) in the year-earlier period.

CONFERENCE CALL AND WEBCAST

The Company has scheduled a conference call and webcast for October 30, 2025 at 11:00 a.m. Eastern Time to present the Company's financial and operating results for the quarter ended September 30, 2025. The dial-in numbers for the conference call are 800-715-9871 (North America) and 646-307-1963 (International) along with passcode 6695005. The conference call will also be available via webcast in the Investor Relations section of the Company's website, www.medicalpropertiestrust.com.

A telephone and webcast replay of the call will be available beginning shortly after the call's completion. The telephone replay will be available through November 6, 2025, using dial-in numbers 800-770-2030 (North America) and 609-800-9909 (International) along with passcode 6695005. The webcast replay will be available for one year following the call's completion on the Investor Relations section of the Company's website.

The Company's supplemental information package for the current period will also be available on the Company's website in the Investor Relations section.

The Company uses, and intends to continue to use, the Investor Relations page of its website, which can be found at www.medicalpropertiestrust.com, as a means of disclosing material nonpublic information and of complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the Investor Relations page, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

About Medical Properties Trust, Inc.

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world's largest owners of hospital real estate with 388 facilities and approximately 39,000 licensed beds in nine countries and across three continents as of September 30, 2025. MPT's financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. For more information, please visit the Company's website at www.medicalpropertiestrust.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can generally be identified by the use of forward-looking words such as "may", "will", "would", "could", "expect", "intend", "plan", "estimate", "target", "anticipate", "believe", "objectives", "outlook", "guidance" or other similar words, and include statements regarding our strategies, objectives, asset sales and other liquidity transactions (including the use of proceeds thereof), expected re-tenanting of facilities and receipt of related rents, expected outcomes from Prospect's Chapter 11 restructuring process and any related transactions, including the application of the Yale settlement payment, the closing of the NOR transaction and receipt of regulatory approvals, and the use of proceeds thereof, MPT's remaining DIP obligations and expected repayments, and potential repurchases under the common stock repurchase program. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results or future events to differ materially from those expressed in or underlying such forward-looking statements, including, but not limited to: (i) the risk that projected rents may be lower than anticipated or realized later than expected; (ii) the risk that the NOR transaction will not receive required regulatory approvals for close; (iii) the risk that the timing, outcome and terms of the bankruptcy restructuring of Prospect will not be consistent with those anticipated by the Company; (iv) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate acquisitions and investments; (v) the risk that previously announced or contemplated property sales, loan repayments, and other capital recycling transactions do not occur as anticipated or at all; (vi) the risk that MPT is not able to attain its leverage, liquidity and cost of capital objectives within a reasonable time period or at all; (vii) MPT's ability to obtain or modify the terms of debt financing on attractive terms or at all, as a result of changes in interest rates and other factors, which may adversely impact our ability to pay down, refinance, restructure or extend our indebtedness as it becomes due, or pursue acquisition and development opportunities; (viii) the ability of our tenants, operators and borrowers to satisfy their obligations under their respective contractual arrangements with us; (ix) the ability of our tenants and operators to operate profitably and generate positive cash flow, remain solvent, comply with applicable laws, rules and regulations in the operation of our properties, to deliver high-quality services, to attract and retain qualified personnel and to attract patients; (x) the risk that we are unable to monetize our investments in certain tenants at full value within a reasonable time period or at all; (xi) the risk that the operations of our tenants will be negatively impacted by changes to Medicaid funding introduced by the OBBBA; and (xii) the risks and uncertainties of litigation or other regulatory proceedings.

The risks described above are not exhaustive and additional factors could adversely affect our business and financial performance, including the risk factors discussed under the section captioned "Risk Factors" in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q, and as may be updated in our other filings with the SEC. Forward-looking statements are inherently uncertain and actual performance or outcomes may vary materially from any forward-looking statements and the assumptions on which those statements are based. Readers are cautioned to not place undue reliance on forward-looking statements as predictions of future events. We disclaim any responsibility to update such forward-looking statements, which speak only as of the date on which they were made.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251029177399/en/

Drew Babin, CFA, CMA

Head of Financial Strategy and Investor Relations

Medical Properties Trust, Inc.

(646) 884-9809

[email protected]