Medical Properties Trust Closes $800 Million 10-Year Loan Secured by U.K. Hospital Portfolio

Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW) today announced the completion of approximately £631 million ($800 million) in new non-recourse, non-amortizing secured financing backed by certain properties in its U.K. portfolio. The lending group comprises a consortium of global institutional, insurance and pension investors led by Song Capital, a European real estate investment firm.

Edward K. Aldag, Jr., Chairman, President and Chief Executive Officer said, “In the first five months of the year, we have raised $2.4 billion of liquidity, comfortably exceeding our initial full year liquidity target of $2.0 billion, as sophisticated third-party investors continue to recognize the value embedded in our leading portfolio of hospital real estate assets. The terms of this most recent financing prove our ability to borrow at long-term fixed costs well inside market-implied rates on our outstanding debt and significantly extend the overall duration of our debt maturities.”

The transaction includes 27 of the 36 facilities MPT leases to Circle Health (“Circle”) in the U.K. and is being executed at a conservatively underwritten loan-to-value ratio in the low-40% range – implying an approximate 20% increase in value since MPT acquired the majority of the underlying properties approximately four years ago, even during a period of cap rate expansion and rising interest rates. The loan carries a fixed cash pay rate of 6.9% over the 10-year term excluding debt issuance costs.

The Company intends to use the proceeds to repay outstanding debt, including the Company’s £105 million secured term loan maturing in December 2024, borrowings under its revolving credit facility, and a portion of its GBP term loan maturing in early 2025, as well as for other general corporate purposes.

Goodwin Procter (UK) LLP acted as legal adviser for MPT. Slaughter and May, CBRE and Rothschild & Co advised Song Capital.

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 436 facilities and approximately 43,000 licensed beds in nine countries and across three continents as of March 31, 2024. 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.