Medical Properties Trust has signed definitive agreements with two new operators besides closing a deal with a third new operator involving a total of 24 hospital facilities for a total investment of around $1.75bn.
Following these deal,s MPT has crossed this year’s acquisition guidance of $2.5bn, with a total investment of $3bn at a blended GAAP rate of 8.2%, within its earlier estimated range of 7.5% to 8.5%.
The agreements include investments in 14 acute care hospitals and two behavioural health hospital facilities operated by Prospect Medical Holdings $1.55bn; seven community hospitals operated by Saint Luke’s Health System for $145m; and one acute care hospital operated by Halsen Healthcare for $55m.
MPT chairman, president and CEO Edward K. Aldag, Jr said: “We are very pleased with the acquisition of these outstanding hospitals which continues our sector leading record of accretive growth, increases the size and diversity of our portfolio, and further reinforces our reputation as the global leader in hospital real estate.
“This is a marquee year for Medical Properties Trust as we entered 2019 in a prime position for accretive capital deployment and subsequently increased our acquisitions guidance by $1.0 billion due to our rapid execution on our deep and diverse global pipeline.
“We have not only achieved – but surpassed – our full year acquisition goal of $2.5 billion at just the half-way mark of the year. Importantly, with the addition of these properties to our portfolio, we have initiated three new operator relationships, extended into new geographic markets, and expanded service lines, including not-for-profit and behavioral. ”
The Prospect and Halsen deals are likely to complete in the second half of this year, after meeting customary closing conditions.
Besides serving as exclusive financial advisor to MPT, Barclays also provided committed financing for a new $1.55bn senior unsecured bridge loan with regard to the Prospect transaction. MPT plans to refinance the acquisitions as market conditions warrant with a combination of new unsecured debt and equity.