NYSE$MPT

Medical Properties Trust Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Medical Properties Trust reported a net loss and normalized FFO for Q4 2022. The company also provided initial 2023 calendar estimates.

Medical Properties Trust reported a net loss of ($0.24) per share and Normalized Funds from Operations (NFFO) of $0.43 per share for the fourth quarter of 2022. The results include a real estate impairment of approximately $171 million and a write-off of roughly $112 million in unbilled Prospect rent. The company is introducing initial 2023 calendar estimates of per share net income and NFFO of $0.83 to $0.98 and $1.50 to $1.65, respectively.

  • Net loss of ($0.24) and Normalized Funds from Operations (“NFFO”) of $0.43 for the 2022 fourth quarter.
  • Fourth quarter 2022 net loss includes a real estate impairment of approximately $171 million related to four properties leased to Prospect Medical Holdings.
  • Write-off of roughly $112 million in unbilled Prospect rent also included in Funds from Operations (“FFO”) but excluded from normalized results.
  • In December, acquired six Priory behavioral health facilities previously leased from a third-party owner in the UK for £233 million.

Headline financials

Total Revenue

$380M

Previous: $409M-7.0%
EPS (adj)

$0.43

Previous: $0.47-8.5%
Net Income

-$140M

Previous: $207M-167.8%
Operating Income

-$125M

Previous: $185M-167.5%
Gross Profit

$373M

Previous: $402M-7.2%
Cash & Equivalents

$236M

Previous: $459M-48.7%
Total Assets

$19.7B

Previous: $20.5B-4.2%
Stock-Based Comp

$16.4M

Previous: $13.5M+21.4%

Revenue & EPS history

Medical Properties Trust · Revenue · Quarterly

$380M

Q4 2022-7%vs Q4 2021
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Medical Properties Trust · $380M total across 4 segments · Q4 2022

  • Rent Billed
    $232M-10.7%
  • Straight-line Rent
    $58M-12.7%
  • Income from Financing Leases
    $48.9M-3.5%
  • Interest and Other Income
    $41.7M+27.6%

Forward guidance

The Company is introducing initial 2023 calendar estimates of per share net income and NFFO of $0.83 to $0.98 and $1.50 to $1.65, respectively.

Tailwinds

  • Significant inflation-based increase in cash rents for 2023
  • Expect to recover full investment in Prospect’s Pennsylvania and Connecticut hospitals
  • Vast majority of portfolio is positioned to support inflation-based increase in cash rents
  • High-end of ranges reflect management’s base case expectation that certain amounts are recovered from Prospect
  • Binding disposition transactions and changes to lease terms

Headwinds

  • Conservative scenario due to the underperformance of Prospect’s Pennsylvania hospitals
  • Process by which we expect to recover our full investment in Prospect’s Pennsylvania and Connecticut hospitals
  • Estimates exclude expected future contributions from development and other capital projects
  • Estimates exclude the possible future impact of deleveraging and other capital markets strategies
  • Low-end accounts for the remote possibility that the entirety of this revenue is recognized subsequent to 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

+1.3%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+0.7%

Avg return

30 days after

65%

42 / 65 earnings

Positive

+17.0%

Q4 2024

Best reaction

-15.8%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.6%-4.1%-6.0%
Q4 2025+12.1%+6.1%-15.1%
Q3 2025+6.6%+1.4%+18.5%
Q1 2025-6.9%-8.0%-17.2%
Q4 2024+17.0%+18.2%+26.6%
Q3 2024+7.0%-5.2%-9.8%
Q2 2024+1.5%+2.4%+7.4%
Q1 2024+7.2%+31.2%+20.4%
Q4 2023+2.5%+6.7%+13.9%
Q3 2023+9.9%+7.2%+4.7%
Q2 2023-15.8%-20.0%-33.4%
Q1 2023+10.6%+4.9%-0.1%
Q4 2022-13.5%-15.6%-38.3%
Q3 2022+6.8%+6.5%+20.6%
Q2 2022-5.3%-4.3%-15.3%
Q1 2022+4.1%+6.3%+5.2%
Q4 2021-4.0%-5.2%-10.2%
Q3 2021+0.1%-1.2%+1.5%
Q2 2021+1.3%-1.5%-3.3%
Q1 2021-2.0%-4.1%-5.9%
Q4 2020+0.0%+1.6%-2.9%
Q3 2020+3.7%+10.9%+13.8%
Q2 2020-0.8%-1.6%-8.5%
Q1 2020+4.1%+0.5%+9.8%
Q4 2019+2.3%+3.6%+1.1%
Q3 2019+1.2%-6.8%+0.9%
Q2 2019+2.1%-0.1%+6.2%
Q1 2019+3.8%+1.2%+2.0%
Q4 2018+3.4%+1.7%+1.1%
Q3 2018+3.2%+9.9%+16.2%
Q2 2018+1.0%+3.0%+4.2%
Q1 2018+1.8%+2.0%+5.6%
Q4 2017+1.6%+1.5%+6.6%
Q3 2017+3.2%+3.9%+4.8%
Q2 2017-1.7%+0.1%+5.2%
Q1 2017+2.1%+2.5%+4.3%
Q4 2016+1.8%+1.8%-6.3%
Q3 2016-0.8%+1.3%-2.7%
Q2 2016+1.1%+2.0%-0.5%
Q1 2016+3.8%
Q4 2015-2.5%
Q3 2015-3.4%
Q2 2015-3.8%
Q1 2015+2.9%
Q4 2014+0.4%
Q3 2014+2.7%
Q2 2014-0.3%
Q1 2014-0.9%
Q4 2013-0.4%
Q3 2013-0.7%
Q2 2013-2.8%
Q1 2013-1.0%
Q4 2012+1.1%
Q3 2012+3.1%
Q2 2012+0.7%
Q1 2012-0.1%
Q4 2011-0.6%
Q4 2009-0.6%
Q3 2011-4.4%
Q2 2011+4.5%
Q1 2011+2.8%
Q4 2010+2.8%
Q3 2010+0.5%
Q2 2010+1.0%
Q1 2010+7.9%

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