Medical Properties Trust Inc. is a U.S.-based real estate investment trust (REIT) focused on healthcare properties. It is the second-largest non-governmental owner of healthcare facilities worldwide. The company engages in triple-net sale-leaseback arrangements that generate monthly income for the business and allow healthcare facilities to unlock the value of their real estate. As of January 2023, the company owned 434 properties across nine countries, including 30 U.S. states, Australia, Columbia, Germany, Italy, Portugal, Spain, Switzerland, Finland and the United Kingdom. Properties house more than 44,000 licensed beds operated by 54 tenant-partners.
Medical Properties Trust was incorporated in August 2003 to invest in medical properties. Since then, the company has made several acquisitions and investments that have grown its market cap to over $8 billion. Acquisitions include but are not limited to Chino Valley Medical Center in 2005, Ernest Health in 2012, Steward Health in 2016 and a slew of facilities in the U.K. during the 2017 to 2019 time frame. The company made its first acquisition in Finland in 2022 and has plans to continue adding to its portfolio.
Medical Properties Trust is an internally-advised real estate investment trust. The company works with nonprofit and for-profit medical facilities of all varieties. The portfolio in late 2022 was 70% general acute care hospitals (200 properties), 10% behavioral health facilities, 9% inpatient care facilities, with the remainder comprised of long-term acute care facilities and freestanding urgent care and emergency room locations. On a regional basis, 62% of properties are in the U.S., with another 18% in the U.K. and 6% in Switzerland.
The portfolio's net asset value was just over $21.1 billion at the start of 2023. That is good for a gain of 109% since the 2018 period alone. The company has produced a 25% compound annual growth rate (CAGR) since 2012, when it began its international expansion. It's the first and only U.S. REIT to focus solely on healthcare facilities and do so internationally. Robert Aldag founded Medical Properties Trust and remains the company's chairman, CEO and president.
Medical Properties Trust Inc.'s financing model allows up to 100% financing of real estate properties owned by healthcare providers. Funds can expand facilities, upgrade operations, hire new staff or meet general operational needs. Benefits for tenants include balance sheet improvement, improved liquidity, reduced tax liability and improved flexibility while maintaining control of the facility. Medical Property Trust Inc. benefits by creating guaranteed monthly revenue streams without the costs of facility maintenance, utilities or property taxes.
Here's how it works: The facility sells the property to Medical Properties Trust. Medical Properties Trust funds the deal with its capital and provides a long-term lease for the property to the original owner.
Medical Properties Trust provides returns for investors via capital appreciation and dividends. The company pays out at least 90% of its distributable income each year in dividends and has increased the annual payment for 10 consecutive years as of 2023.