Q4 2025 Medical Properties Trust Inc Earnings Call

February 19, 2026

Operator: Thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Medical Properties Trust Q4 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise during this 60-minute call. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press Star followed by the number 1 on your telephone keypad. If you'd like to withdraw your question, press Star 1 again. Thank you. I would now like to turn the call over to Charles Lambert, Senior Vice President. Please go ahead.

Speaker #2: All lines have been placed on mute to prevent any background noise during this 60-minute call. After the speakers' remarks, there will be a question-and-answer session.

Speaker #2: If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you'd like to withdraw your question, press star 1 again.

Speaker #2: Thank you. I would now like to turn the call over to Charles Lambert, Senior Vice President. Please go ahead. Thank you and good morning.

Charles R. Lambert: Thank you, and good morning. Welcome to the MPT conference call to discuss our Q4 and full year 2025 financial results. With me today are Edward K. Aldag, Jr., Chairman, President, and Chief Executive Officer of the company; Steven Hamner, Executive Vice President and Chief Financial Officer; Kevin Hanna, Senior Vice President, Controller, and Chief Accounting Officer; Rosa Williams, Senior Vice President of Operations and Secretary; and Jason Tribe, Managing Director, Asset Management and Underwriting. Our press release was distributed this morning and furnished on Form 8-K with the Securities and Exchange Commission. If you did not receive a copy, it is available on our website at mpt.com in the Investor Relations section. Additionally, we're hosting a live webcast of today's call, which you can access in that same section.

Speaker #2: Welcome to the MPT conference call to discuss our fourth quarter and full year 2025 financial results. With me today are Edward K. Aldag, Jr., Chairman, President, and Chief Executive Officer of the company; Stephen Hamner, Executive Vice President and Chief Financial Officer; Kevin Hanna, Senior Vice President, Controller, and Chief Accounting Officer; Rosa Williams, Senior Vice President of Operations and Secretary; and Jason Fry, Managing Director, Asset Management and Underwriting.

Speaker #2: Our press release was distributed this morning and furnished on Form 8-K with the Securities and Exchange Commission. If you did not receive a copy, it is available on our website at mpt.com in the Investor Relations section.

Speaker #2: Additionally, we're hosting a live webcast of today's call, which you can access in that same section. During the course of this call, we will make projections and certain other statements that may be considered forward-looking statements within the meaning of the private securities litigation reform act of 1995.

Charles R. Lambert: During the course of this call, we will make projections and certain other statements that may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause our financial results and future events to differ materially from those expressed in or underlying such forward-looking statements. We refer you to the company's reports filed with the Securities and Exchange Commission for a discussion of the factors that could cause the company's actual results or future events to differ materially from those expressed in this call. The information being provided today is as of this date only, and except as required by the federal securities laws, the company does not undertake a duty to update any such information.

Speaker #2: These forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause our financial results and future events to differ materially from those expressed in or underlying such forward-looking statements.

Speaker #2: We refer you to the company's reports, filed with the Securities and Exchange Commission, for discussion of the factors that could cause the company's actual results or future events to differ materially from those expressed in this call.

Speaker #2: The information being provided today is as of this date only and accept as required by the Federal Securities Laws, the company does not undertake a duty to update any such information.

Speaker #2: In addition, during the course of the conference call, we will describe certain non-GAAP financial measures which should be considered in addition to and not in lieu of comparable GAAP financial measures.

Charles R. Lambert: In addition, during the course of the conference call, we will describe certain non-GAAP financial measures, which should be considered in addition to, and not in lieu of, comparable GAAP financial measures. Please note that in our press release, Medical Properties Trust has reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg G requirements. You can also refer to our website at mpt.com for the most directly comparable financial measures and related reconciliations. I will now turn the call over to our Chief Executive Officer, Ed Aldag.

Speaker #2: Please note that in our press release, Medical Properties Trust has reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg G requirements.

Speaker #2: You can also refer to our website at mpt.com for the most directly comparable financial measures and related reconciliations. I will now turn the call over to our Chief Executive Officer, Ed Aldag.

Speaker #3: Thank you, Charles. And thanks to all of you for joining us this morning on our fourth quarter 2025 earnings call. Before you hear from the rest of the team, I'll spend a few minutes discussing what we're seeing across our diverse portfolio of hospitals, as well as a few recent strategic updates.

Edward K. Aldag, Jr.: Thank you, Charles, and thanks to all of you for joining us this morning on our Q4 2025 earnings call. Before you hear from the rest of the team, I'll spend a few minutes discussing what we're seeing across our diverse portfolio of hospitals, as well as a few recent strategic updates. Beginning with performance trends, total portfolio EBITDARM coverage increased year-over-year to 2.6 times. General acute operators delivered particularly strong performance, with more than $130 million EBITDARM increase versus the same quarter last year. For the second consecutive quarter, post-acute care operators reported a $50 million EBITDARM increase year-over-year... led by a 15% improvement at Ernest Health, a 28% improvement at Vibra, and an 8% increase at MEDIAN.

Speaker #3: Beginning with performance trends, total portfolio EBITDA arm coverage increased year over year to 2.6 times. General acute operators delivered particularly strong performance, with more than 130 million EBITDA arm increase versus the same quarter last year.

Speaker #3: For the second consecutive quarter, post-acute care operators reported a 50 million EBITDA arm increase year over year, led by a 15% improvement at earnest health, a 28% improvement at Vibra, and an 8% increase at Median.

Speaker #3: Finally, our behavioral health portfolio was down slightly year over year, driven by certain volume headwinds in the UK market and labor cost pressures in the US, which Rosa will elaborate on shortly.

Edward K. Aldag, Jr.: Finally, our behavioral health portfolio was down slightly year-over-year, driven by certain volume headwinds in the UK market and labor cost pressures in the US, which Rosa will elaborate on shortly. During the quarter, we continued to take decisive steps to strengthen our portfolio. Given the strong performance of its post-acute facilities over the past few quarters, we are pleased to enter into a new 20-year master lease agreement with Vibra. We capitalized on an opportunity to acquire a high-performing post-acute facility in California for approximately $32 million with a strong cap rate. More recently, we acquired a new post-acute care facility in Europe for EUR 23 million. We also continued to identify opportunities within the portfolio to achieve attractive returns that enhance our capital allocation flexibility moving forward. To that end, we sold 6 smaller properties during the quarter.

Speaker #3: During the quarter, we continued to take decisive steps to strengthen our portfolio. Given the strong performance of its post-acute facilities over the past few quarters, we are pleased to enter into a new 20-year master lease agreement with Vibra.

Speaker #3: We capitalized on an opportunity to acquire a high-performing post-acute facility in California, for approximately $32 million, with a strong cap rate. More recently, we acquired a new post-acute care facility in Europe for €23 million.

Speaker #3: We also continue to identify opportunities within the portfolio to achieve attractive returns that enhance our capital allocation flexibility moving forward. To that end, we sold six smaller properties during the quarter.

Speaker #3: Before turning it over to Rosa, I also want to acknowledge that 2025 marked our 20th anniversary as a publicly traded company. Throughout the past two decades, we have been guided by the same core principles: providing hospital operators with capital solutions that allow them to focus on patient care; acquiring high-value real estate to deliver attractive returns for our shareholders; and supporting the communities we serve around the world.

Edward K. Aldag, Jr.: Before turning it over to Rosa, I also want to acknowledge that 2025 marked our 20th anniversary as a publicly traded company. Throughout the past 2 decades, we have been guided by the same core principles, providing hospital operators with capital solutions that allow them to focus on patient care, acquiring high-value real estate to deliver attractive returns for our shareholders, and supporting the communities we serve around the world. These principles have stayed true as we've navigated periods of significant opportunities and challenges, and they continue to shape the strength of our business today. We are entering our third decade as a public company with strong conviction in our business model and a clear focus on strengthening our platform for the long term. We recently unveiled an updated brand identity, and we were able to acquire MPT as our stock ticker.

Speaker #3: These principles have stayed true as we've navigated periods of significant opportunities and challenges, and they continue to shape the strength of our business today.

Speaker #3: We are entering our third decade as a public company with strong conviction in our business model, and a clear focus on strengthening our platform for the long term.

Speaker #3: We recently unveiled an updated brand identity, and we were able to acquire MPT as our stock ticker. Given the encouraging performance trends across the portfolio, we remain confident in reaching our goal of over 1 billion in annualized cash rent by year-end.

Edward K. Aldag, Jr.: Given the encouraging performance trends across the portfolio, we remain confident in reaching our goal of over $1 billion in annualized cash rent by year-end. Rosa?

Speaker #3: Rosa, thank you, Ed. Entering 2026, I'm encouraged by the strength and steadiness we see across our global portfolio. Echoing Ed's comments, 2025 was a year in which we solidified our foundation for long-term sustainable performance.

Rosa Hooper: Thank you, Ed. Entering 2026, I'm encouraged by the strength and steadiness we see across our global portfolio. Echoing Ed's comments, 2025 was a year in which we solidified our foundation for long-term, sustainable performance. Our operators' discipline, coupled with our own structured approach to re-tenanting and portfolio positioning, gives us confidence as we look ahead to 2026 and beyond. Our international portfolio today comprises 50% of our investments, and these operators continue to be a cornerstone of portfolio stability. In Germany, MEDIAN recorded its strongest quarter since entering the portfolio, with quarterly EBITDARM increasing more than 20% year-over-year, with occupancy at 90%. Improving reimbursement levels, growing orthopedics demand contributed to notable operational momentum that positions MEDIAN for continued strong performance in 2026.

Speaker #3: Our operators, discipline, coupled with our own structured approach to retenting and portfolio positioning, gives us confidence as we look ahead to 2026 and beyond.

Speaker #3: Our international portfolio today comprises 50% of our investments, and these operators continue to be a cornerstone of portfolio stability. In Germany, Median recorded its strongest quarter since entering the portfolio.

Speaker #3: With quarterly EBITDA arm increasing more than 20% year over year, with occupancy at 90%. Improving reimbursement levels, growing orthopedics demand contributed to notable operational momentum that positions Median for continued strong performance in 2026.

Speaker #3: In the UK, general acute operators such as Circle Health sustained strong performance in the face of an evolving healthcare landscape. As a result of NHS budget constraints, impacting the behavioral health market, priority remains focused on adjusting to shifts in referral patterns and strategically modifying service lines to meet market demand at certain of its facilities.

Rosa Hooper: In the UK, general acute operators, such as Circle Health, sustained strong performance in the face of an evolving healthcare landscape. As a result of NHS budget constraints impacting the behavioral health market, Priory remains focused on adjusting to shifts in referral patterns and strategically modifying service lines to meet market demand at certain of its facilities. Across continental Europe, Swiss Medical Network reported solid year-over-year growth in hospital EBITDARM. Its new clinical collaboration with the Mayo Clinic enhances its long-term capabilities and international reputation. Additional operators, such as HM Hospitales, IMED, and Atos, continue to produce steady performance trends. Turning to the US portfolio, Ernest Health delivered double-digit growth in EBITDARM year-over-year, supported by strong performance of their inpatient rehabilitation facilities and expansion of inpatient rehab units within LTAC facilities.

Speaker #3: Across continental Europe, Swiss medical network reported solid year-over-year growth in hospital EBITDA arm. It's new clinical collaboration with the Mayo Clinic enhances its long-term capabilities and international reputation.

Speaker #3: Additional operators such as Hospitalis, EMED, and Atos continue to produce steady performance trends. Turning to the US portfolio, Earnest Health delivered double-digit growth in EBITDA ARM year over year, supported by strong performance of their inpatient rehabilitation facilities and expansion of inpatient rehab units within LTAC facilities.

Speaker #3: Earnest also successfully refinanced their 2026 term loan and revolver in Q4, extending maturities out to 2030 and compressing the rate. A significant credit enhancement.

Rosa Hooper: Ernest also successfully refinanced their 2026 term loan and revolver in Q4, extending maturities out to 2030 and compressing the rate, a significant credit enhancement. At LifePoint Behavioral, new leadership is implementing forward-looking program enhancements that will modernize the segment, control labor costs, and support a strong revenue mix throughout 2026. As Ed mentioned, we recently entered into a new Master Lease Agreement with Vibra, who increased EBITDARM coverage 28% year-over-year in Q3, driven by strong earnings in the rehab division. Our other long-standing tenants, such as Surgery Partners and Pipeline, continue to report healthy performance trends. Finally, our portfolio of recently transitioned tenants' rent continues to ramp, and we expect them to be at 100% contractual rent by the end of 2026.

Speaker #3: At LifePoint Behavioral, new leadership is implementing forward-looking program enhancements that will modernize the segment, control labor costs, and support a strong revenue mix throughout 2026.

Speaker #3: As Ed mentioned, we recently entered into a new master lease agreement with Vibra, who increased EBITDA arm coverage 28% year over year in Q3, driven by strong earnings in the rehab division.

Speaker #3: Our other long-standing tenants, such as Surgery Partners and Pipeline, continue to report healthy performance trends. Finally, our portfolio of recently transitioned tenants’ rent continues to ramp, and we expect them to be at 100% contractual rent by the end of 2026.

Speaker #3: During the quarter, we entered into a new 15-year lease agreement with Noor Health Systems in California, which is expected to reach stabilized annual cash rent of $45 million in December, in line with the rent previously paid by prospect for these facilities.

Rosa Hooper: During the quarter, we entered into a new 15-year lease agreement with Noor Health Systems in California, which is expected to reach stabilized annual cash rent $45 million in December, in line with the rent previously paid by Prospect for these facilities. HSA showed measured progress in Q4, with modest improvements in collections across its markets. Upcoming supplemental receipts and the expected implementation of the Meditech EMR system in Q2 are anticipated to support operations and facilitate cost savings. While HSA remains focused on improving cash collections, it's important to remember that HSA will finally be fully standalone operationally once the EMR system is implemented. We feel comfortable with the steps underway to drive revenue cycle management enhancements. Our team continues to carefully monitor performance across these new operators.

Speaker #3: HSA showed measured progress in Q4, with modest improvements in collections across its markets. Upcoming supplemental receipts and the expected implementation of the Meditech EMR system in Q2 are anticipated to support operations and facilitate cost savings.

Speaker #3: While HSA remains focused on improving cash collections, it's important to remember that HSA will finally be fully standalone operationally once the EMR system is implemented.

Speaker #3: We feel comfortable with the steps underway to drive revenue cycle management enhancements. Our team continues to carefully monitor performance across these new operators. In fact, just last week, members of our team visited the Noor and HSA Miami facilities, all of which had high patient activity.

Rosa Hooper: In fact, just last week, members of our team visited the Noor and HSA Miami facilities, all of which had high patient activity. It's clear that efforts to bring back doctors and improve EMS turnaround times are already having a positive impact. While the facilities are generally clean and in good condition, each operator is actively undertaking projects to modernize the properties. Taken together, the consistent performance of our international assets, the steady execution of our core US operators, and the ongoing ramp of our transitioned tenants provide us with a clear, confident outlook heading into 2026. We expect 2026 to be a year of continued stabilization and increasing cash rents as our tenants capitalize on service line enhancements, reimbursement tailwinds, EMR modernization, and operating efficiencies gained throughout 2025. Our global portfolio is stronger, more diversified, and more resilient than it has ever been.

Speaker #3: It's clear that efforts to bring back doctors and improve EMS turnaround times are already having a positive impact. While the facilities are generally clean and in good condition, each operator is actively undertaking projects to modernize the properties.

Speaker #3: Taken together, the consistent performance of our international assets, the steady execution of our core U.S. operators, and the ongoing ramp of our transitioned tenants provide us with a clear, confident outlook heading into 2026.

Speaker #3: We expect 2026 to be a year of continued stabilization, an increasing cash rents, as our tenants' capitalize on service line enhancements reimbursement tailwinds, EMR modernization, and operating efficiencies gained throughout 2025.

Speaker #3: Our global portfolio is stronger, more diversified, and more resilient than it has ever been. We are confident in the long-term earnings power of these assets, and we remain steadfast in our commitment to generating stable, growing cash flows for shareholders.

Rosa Hooper: We are confident in the long-term earnings power of these assets, and we remain steadfast in our commitment to generating stable, growing cash flows for shareholders. Kevin?

Speaker #3: Kevin, thank you, Rosa. Today we reported normalized FFO of $0.18 per share for the fourth quarter and $0.58 per share for the full year 2025.

J. Kevin Hanna: Thank you, Rosa. Today, we reported normalized FFO of $0.18 per share for Q4 and $0.58 per share for the full year of 2025. As mentioned in our press release this morning, we completed a restructuring transaction with Vibra in Q4, resulting in a new master lease agreement, and collection of approximately $18 million in the form of a one-time rent payment for past obligations. In October, we received a $4 million payment of September rent from HSA. As a result of these cash receipts, normalized FFO was approximately 3 to 4 cents higher than it otherwise would have been for the quarter. In Q4, we entered into a new lease with Noor Health Systems for the 6 California properties previously leased to Prospect.

Speaker #3: As mentioned in our press release this morning, we completed a restructuring transaction with Vibra in the fourth quarter. Resulting in a new master lease agreement and collection of approximately $18 million in the form of a one-time rent payment for past obligations.

Speaker #3: In October, we received a $4 million payment of September rent from HSA. As a result of these cash receipts, normalized FFO was approximately 3 to 4 cents higher than it otherwise would have been for the quarter.

Speaker #3: In the fourth quarter, we entered into a new lease with Noor Healthcare Systems for the six California properties previously leased to Prospect. Noor is contractually scheduled to begin paying partial rent in June 2026, with a ramp-up to 100% of contractual rents in December 2026.

J. Kevin Hanna: Noor is contractually scheduled to begin paying partial rent in June 2026, with a ramp-up to 100% of contractual rents in December 2026. We plan to account for their revenue on a cash basis as well. G&A expense was lower year-over-year in the quarter, primarily driven by the lower stock compensation expense due to the change in fair market value of certain performance-based equity compensation. Finally, we recorded approximately $34 million of impairment charges in the quarter, the majority of which related to Prospect. From a cash flow perspective, we received approximately $70 million of net proceeds from the Prospect bankruptcy in the quarter, with a remaining investment of $60 million expected to be collected in 2026 as the bankruptcy process nears an end. Steve?

Speaker #3: We plan to account for their revenue on a cash basis as well. G&A expense was lower year over year in the quarter, primarily driven by lower stock compensation expense due to the change in fair market value of certain performance-based equity compensation.

Speaker #3: Finally, we recorded approximately $34 million of impairment charges in the quarter, the majority of which related to Prospect. From a cash flow perspective, we received approximately $70 million of net proceeds from the Prospect bankruptcy in the quarter, with a remaining investment of $60 million expected to be collected in 2026 as the bankruptcy process nears an end.

Speaker #3: Steve, thank you, Kevin. I just have a few general comments about our financial position and outlook, and then we can take any questions. First, a general reminder of our debt maturities and our options for refinancing and deleveraging.

R. Steven Hamner: Thank you, Kevin. I just have a few general comments about our financial position and outlook, and then we can take any questions. First, a general reminder of our debt maturities and our options for refinancing and deleveraging. Our nearest maturity is a EUR 500 million euro unsecured notes issue, due in October of this year. We are paying a rate of 0.99% on these notes, and so we'll, of course, maximize the time benefit from that rate. Our bank revolver and $200 million term loan will mature in June 2027, after our presumed extension of this facility. And then our $1.4 billion unsecured notes issue matures in October 2027. We retain numerous options for refinancing maturing debt over the next two years.

Speaker #3: Our nearest maturity is a $500 million unsecured notes issue due in October of this year. We are paying a rate of 0.99% on these notes, and so we'll, of course, maximize the time benefit from that rate.

Speaker #3: Our bank revolver and $200 million term loan will mature in June of 2027. After our presumed extension of this facility, and then our 1.4 billion unsecured notes issue matures in October 2027.

Speaker #3: We retain numerous options for refinancing maturing debt over the next two years. Without belaboring those options, which we have discussed previously, they include refinancing with secured debt, additional asset sales, and other transactions as the capital markets and our cost of capital continue to evolve.

R. Steven Hamner: Without belaboring those options, which we have discussed previously, they include refinancing with secured debt, additional asset sales, and other transactions as the capital markets and our cost of capital continue to evolve. We are confident in these options because of our recent successes, generating highly profitable sales of hospital real estate, achieving attractive terms on the $2.5 billion of secured notes we issued a year ago, the euro portion of which are now trading at premiums implying a 5-ish% rate, and the successful 10-year secured financing of our German rehab portfolio in June of last year at a similar 5-ish% coupon. Our carefully crafted covenants have provided plenty of headroom to be able to consider each of these potential options.

Speaker #3: We are confident in these options because of our recent successes generating highly profitable sales of hospital real estate. Achieving attractive terms on the two and a half billion dollars of secured notes we issued a year ago, the Euro portion of which are now trading at premiums implying a five-ish percent rate, and the successful 10-year secured financing of our German rehab portfolio in June of last year, at a similar five-ish percent coupon.

Speaker #3: Our carefully crafted covenants have provided plenty of headroom to be able to consider each of these potential options. As Ed mentioned, we announced a $150 million share repurchase plan last quarter that we used to repurchase a little less than 1% of our market cap through the end of the year.

R. Steven Hamner: As Ed mentioned, we announced a $150 million share repurchase plan last quarter that we used to repurchase a little less than 1% of our market cap through the end of the year. We also invested about $60 million in two attractively priced and well-performing post-acute rehabilitation facilities... which we intend to add to the respective master leases of two important long-term tenants. While these are relatively modest acquisitions, the acute and post-acute hospital real estate market continues to offer attractive growth opportunities, both in the US and Europe, that we will take advantage of as our cost of capital continues to improve. And with that, I will turn the call back over to the operator to cue any questions. Regina?

Speaker #3: We also invested about $60 million into attractively priced and well-performing post-acute rehabilitation facilities, which we intend to add to the respective master leases of two important long-term tenants.

Speaker #3: While these are relatively modest acquisitions, the acute and post-acute hospital real estate market continues to offer attractive growth opportunities both in the US and Europe.

Speaker #3: That we will take advantage of as our cost of capital continues to improve. And with that, I will turn the call back over to the operator to cue any questions.

Speaker #3: Regina, at this time, I would like to remind everyone in order to ask a question, press star, then the number one on your telephone keypad.

Operator: At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. Please limit to one question and one follow-up. Our first question will come from the line of Michael Diana with Maxim Group. Please go ahead.

Speaker #3: Please limit to one question and one follow-up. Our first question will come from the line of Michael Diana with Maxim Group. Please go ahead.

Speaker #3: Thank you. I'd like to talk a little about your facility recycling during the quarter. I think you mentioned you sold six small properties, and in a surprise to me anyway, bought two properties.

[Analyst] (Maxim Group): Thank you. I'd like to talk a little about your facility recycling during the quarter. I think you mentioned you sold six small properties and, in a surprise to me anyway, bought two properties. So maybe you could talk about those eight properties, but also just more in general, what your view is on the recycling.

Michael Diana: Thank you. I'd like to talk a little about your facility recycling during the quarter. I think you mentioned you sold six small properties and, in a surprise to me anyway, bought two properties. So maybe you could talk about those eight properties, but also just more in general, what your view is on the recycling.

Speaker #3: So maybe you could talk about those eight properties, but also just more in general, what your view is on the recycling. Sure, Michael. But let me first take the opportunity to thank you for picking up coverage on us in the time you spent with us to fully understand the company and our business model and we certainly look forward to working with you.

Edward K. Aldag, Jr.: Sure, Michael, but let me first take the opportunity to thank you for picking up coverage on us and the time you spent with us to fully understand the company and our business model, and we certainly look forward to working with you. So the six properties that we sold were smaller properties. They were properties that were underperforming for the rest of the portfolio. We will continue to look at opportunities like that going forward, but also it's. We're in a position now where we can go back into the acquisition mode. We'll do it very selectively. We believe that the two properties that we acquired are very good investment and the opportunity for us to continue to support our existing tenants.

Speaker #3: So the six properties that we sold were smaller properties; they were properties that were underperforming for the rest of the portfolio. We will continue to look at opportunities like that going forward, but also it's we're in a position now where we can go back into the acquisition mode.

Speaker #3: We'll do it very selectively. We believe that the two properties that we acquired are very good investment, and the opportunity for us to continue to support our existing tenants.

[Analyst] (Maxim Group): Okay, great. Thank you very much.

Michael Diana: Okay, great. Thank you very much.

Speaker #3: Okay, great. Thank you very much. Our next question will come from the line of John Kilicowsky with Wells Fargo. Please go ahead. Good morning.

Operator: Our next question will come from the line of John Kilikowski with Wells Fargo. Please go ahead.

Operator: Our next question will come from the line of John Kilichowski with Wells Fargo. Please go ahead.

Connor Siversky: Good morning. Thanks for taking my question. Maybe if we could just start on the Prospect sales. If you could just kind of help me with sources and uses. I think you gave some helpful color in the opening remarks, but maybe just to tie it all together, could you talk about the sales proceeds from the assets that have closed, the expectations of the asset under contract, and then maybe what's gonna be above and beyond, you know, the debt financing and where those proceeds will go?

John Kilichowski: Good morning. Thanks for taking my question. Maybe if we could just start on the Prospect sales. If you could just kind of help me with sources and uses. I think you gave some helpful color in the opening remarks, but maybe just to tie it all together, could you talk about the sales proceeds from the assets that have closed, the expectations of the asset under contract, and then maybe what's gonna be above and beyond, you know, the debt financing and where those proceeds will go?

Speaker #3: Thanks for taking my question. Maybe if we could just start on the prospect sales, if you could just kind of help me with sources and uses.

Speaker #3: I think you gave some helpful color in the opening remarks, but maybe just to tie it all together, could you talk about the sales proceeds from the assets that have closed?

Speaker #3: The expectations of the asset under contract, and then maybe what's going to be above and beyond the debt financing and where those proceeds will go.

Speaker #3: So the only remaining transaction that's pending is the bonding contract to acquire the Waterbury facility in Connecticut, and we expect that to close in this quarter.

R. Steven Hamner: So the only, the only remaining transaction that's pending is the bonding contract to acquire the Waterbury facility in Connecticut, and we expect that to close in this quarter. That will significantly finalize the major components of the Prospect bankruptcy. We expect proceeds that will come from that sale, along with collecting of the receivables, that will probably take over the next, you know, 60 to 90 days, will fully pay the DIP financing.

Speaker #3: That will significantly finalize the major components of the Prospect bankruptcy. We expect proceeds that will come from that sale, along with collecting of the receivables, that will probably take over the next 60 to 90 days.

Speaker #3: We'll fully pay the debt financing, and as we announced previously, probably going back as many as two quarters, we've committed to a super secure debt commitment that we may fund going forward that the proceeds from causes of action, that is, litigation that's being pursued by the litigation trust, we have first claim on those proceeds, and we remain highly confident, frankly, that those super secure debt financing will be repaid from those proceeds.

R. Steven Hamner: And as we announced previously, probably going back as many as 2 quarters, we've committed to a super secured DIP commitment that we may find going forward, that the proceeds from causes of action, that is, litigation, that's being pursued by the litigation trust, we have first claim on those proceeds, and we remain highly confident, frankly, that those super secured DIP financing will be repaid from those proceeds.

Speaker #3: That's helpful, thank you. And then maybe just jumping to your ’26 rent target and the ramp from your legacy assets, the legacy Steward assets.

Connor Siversky: That's helpful. Thank you. And then maybe just jumping to your 26 rent target and the, and the ramp from your legacy assets, legacy Steward assets, the $22 million that you got this quarter. I, I believe last quarter, we got some color on expectations looking forward. Are you able to provide any color on what you expect to receive in Q1 of this year?

John Kilichowski: That's helpful. Thank you. And then maybe just jumping to your 26 rent target and the, and the ramp from your legacy assets, legacy Steward assets, the $22 million that you got this quarter. I, I believe last quarter, we got some color on expectations looking forward. Are you able to provide any color on what you expect to receive in Q1 of this year?

Speaker #3: The 22 million that you got this quarter, I believe last quarter we got some color on expectations looking forward. Are you able to provide any color on what you expect to receive in the first quarter of this year?

Speaker #3: No, we're not yet getting guidance on quarterly or annual amounts for a couple of reasons. One is, as Kevin mentioned, we still have several fairly significant tenants that we are accounting for on the cash received basis, and so we continue to watch that rent ramp.

R. Steven Hamner: No, we're not, we're not yet giving guidance on quarterly or annual amounts for a couple of reasons. One is, as Kevin mentioned, we still have several fairly significant tenants that we are accounting for on the cash received basis. And so we continue to watch that rent ramp. It has ramped in accordance with the contract that we entered into with those tenants going on 18 months ago now. And I think we said in our press release this morning that virtually all of them are fully paid as we sit here today. Now, I'll qualify that with the two very small tenants that in recent quarters we've also called out roughly 3% of the total replacement rents are not yet paying rent.

Speaker #3: It has ramped in accordance with the contract that we entered into with those tenants going on 18 months ago, now, and I think we sit in a press release this morning that virtually all of them are fully paid, as we sit here today.

Speaker #3: Now, I'll qualify that with the two very small tenants that in recent quarters we've also called out roughly 3% of the total replacement rents are not yet paying rent.

R. Steven Hamner: But nonetheless, and as Ed pointed out, we continue to expect through 2026, by the end of 2026, we'll be at an annualized run rate of cash collections exceeding $1 billion.

Speaker #3: But nonetheless, and as Ed pointed out, we continue to expect that through 2026, by the end of 2026, we'll be at an annualized run rate of cash collections exceeding $1 billion.

R. Steven Hamner: But nonetheless, and as Ed pointed out, we continue to expect through 2026, by the end of 2026, we'll be at an annualized run rate of cash collections exceeding $1 billion.

Speaker #3: And John, I think just further answer that question with Steve is that there was one payment that HSA made for that was received last quarter that was for the previous quarter.

Edward K. Aldag, Jr.: And John, I think just further answer that question with Steve is that there was one payment that HSA made that was received last quarter, that was for the previous quarter. Kevin went through that. The next big jump will be when Noor starts paying rent in June, I believe it is.

Speaker #3: Kevin went through that. The next big jump will be when NOR starts paying rent in June, I believe it is. Okay. Got it. Thank you.

Connor Siversky: Okay. Got it. Thank you.

John Kilichowski: Okay. Got it. Thank you.

Speaker #3: Our next question will come from the line of Austin Wehrschmidt with KeyBank. Please go ahead. Hi, this is Vikram Garwal on for Austin. Thanks for taking our questions.

Operator: Our next question will come from the line of Austin Werschmidt with KeyBanc. Please go ahead.

Austin Wurschmidt: Hi, this is Vikram Garwal on for Austin. Thanks for taking our questions. Just one from me. Can you provide us with some additional color on the Vibra restructuring? Specifically, what was previous and what is the new cash rent expected from Vibra?

Vikram Garewal: Hi, this is Vikram Garwal on for Austin. Thanks for taking our questions. Just one from me. Can you provide us with some additional color on the Vibra restructuring? Specifically, what was previous and what is the new cash rent expected from Vibra?

Speaker #3: Just one for me. Can you provide us with some additional color on the Vibra restructuring? Specifically, what was previous and what is the new cash rent expected from Vibra?

Speaker #3: No, we haven't detailed that out. I'll remind you for the last couple of years, we've referred to this tenant kind of vaguely as the 1% tenant that we've been restructuring.

R. Steven Hamner: ... No, we haven't detailed that out. I'll remind you, for the last couple of years, we've referred to this tenant kind of vaguely as the 1% tenant that we've been restructuring. That was consummated in Q4, and therefore, the collection of $18 million of rent that was due, although not paid, pending restructuring. And going forward, Vibra is a significantly stronger tenant for us. And I'll just again reiterate, based on your question, that there's no impact on previous rental revenue because we haven't been recognizing it because Vibra has been on the cash basis. I don't know, Austin, if that addressed your question.

Speaker #3: That was consummated in the fourth quarter, and therefore the collection of $18 million of rent that was due although not paid pending restructuring, and going forward, Vibra is a significantly stronger tenant for us.

Speaker #3: And I'll just again reiterate, based on your question, that there's no impact on previous rental revenue because we haven't been recognizing it, because Vibra has been on the cash basis.

Speaker #3: I don't know Austin's addressed your question. And Nick, as a part of answering that question, Vibra refinanced all of their debt, so as Steve said, they're in a much better position today than they had previously been.

Edward K. Aldag, Jr.: This is Nick. And Nick, as, as a part of answering that question, Vibra refinanced all of their debt. So as Steve said, they're in a much better position today than they have previously been. A couple of their properties are actually now leased to Select Medical, and rather, rather than Vibra from our standpoint.

Speaker #3: A couple of their properties are actually now leased to a select medical, and rather than Vibra from our standpoint. Understood. That's helpful. Thank you.

Austin Wurschmidt: Understood. That's helpful. Thank you.

Vikram Garewal: Understood. That's helpful. Thank you.

Speaker #3: Our next question will come from the line of Michael Carroll with RBC Capital Markets. Please go ahead. Michael, you might be on mute. Sorry.

Operator: Our next question will come from the line of Michael Carroll with RBC Capital Markets. Please go ahead. Michael, you might be on mute.

Michael Carroll: Sorry. I wanted to stay on the Vibra transaction. I just wanted to confirm, in the press release, it sounded like the $32 million acquisition was leased to Vibra. I mean, did you buy that from Vibra? And if so, why was that included in this transaction?

Speaker #3: I wanted to stay on the Vibra transaction. I just wanted to confirm, in the press release, it sounded like the $32 million acquisition was leased to Vibra.

Speaker #3: I mean, did you buy that from Vibra? And if so, why was that included in this transaction? We did buy it from Vibra, and it is a great facility that we feel very good about and are glad to have the opportunity to acquire.

Edward K. Aldag, Jr.: We did buy it from Vibra, and it is a great facility that we feel very good about and glad to have had the opportunity to acquire.

Speaker #3: So okay. And then the cash went to Vibra for that specific deal then? Correct. Okay. And then just to clarify a little bit, the $18 million we've actually had on our books, a significant portion of that since this time last year when Vibra made a deposit of $20 million.

Michael Carroll: So, okay, and then the cash went to Vibra for that specific deal then?

Edward K. Aldag, Jr.: Correct.

Michael Carroll: Okay. And then-

R. Steven Hamner: I'll point out, though, Mike, just, just to clarify a little bit.

Michael Carroll: Sure.

R. Steven Hamner: The $18 million, we've actually had on our books a significant portion of that since this time last year, when Vibra made a deposit of $20 million. And of that, about half of it, we held in reserve to apply to rent. So your point is well taken. Yes, we provided proceeds by virtue of acquiring this asset, but Vibra itself has put in probably upwards of $70 million over the course of this restructuring.

Speaker #3: And of that, about half of it we held in reserve to apply to rent, so your point's well taken. Yes, we provided proceeds by virtue of acquiring this asset, but Vibra itself has put in probably upwards of $70 million over the course of this restructuring.

Edward K. Aldag, Jr.: Vibra actually used the proceeds from this sale to pay off debt that they had.

Speaker #3: And Vibra actually used the proceeds from this sale to pay off debt that they had. Okay. I mean, is there—and maybe it's just because the transaction was pretty complicated.

Edward K. Aldag, Jr.: Vibra actually used the proceeds from this sale to pay off debt that they had.

Michael Carroll: Okay. I mean, is there... And maybe it's just because the transaction was pretty complicated. I know that we've been talking about the 1 percent tenant slash Vibra for, it seems like the past few years now. I mean, is there a reason why it took so long to get this done? And is there anything... And I guess, and back to your earlier comment, Steve, you said that you weren't recognizing any rent from Vibra. So did Vibra have zero rent payment in the fourth quarter outside of that $18 million payment, so it will be additive as you go into Q1 2026?

Speaker #3: I know that we've been talking about the 1% tenant/Vibra for it seems like the past few years now. I mean, is there a reason why it took so long to get this done?

Speaker #3: And is there anything and I guess, and back to your earlier comments, Steve, you said that you weren't recognizing any rent from Vibra, so did Vibra have zero rent payment in the fourth quarter outside of that $18 million payment?

Speaker #3: So it will be additive as you go into Q1 '26? No, they were actually paying rent. This was just additional rent that they owed as well.

Edward K. Aldag, Jr.: No, they were they were actually paying rent. This was just additional rent that they owed as well.

Speaker #3: That had not previously been recognized. And the first part of your question, as I said, it was a total refinancing of Vibra's balance sheet.

R. Steven Hamner: That had not previously been recognized.

Edward K. Aldag, Jr.: To answer the first part of your question, as I said, it was a total refinancing of Vibra's balance sheet, so there were multiple parties involved.

Speaker #3: So there were multiple parties involved. Okay, great. Thank you. Our next question will come from the line of Mike Mueller with JPMorgan. Please go ahead.

Michael Carroll: Okay, great. Thank you.

Operator: Our next question will come from the line of Mike Mueller with JP Morgan. Please go ahead.

Speaker #3: Yeah. A couple of questions. I guess on the first one, for this acquisition and the other acquisition, can you talk about pricing? I guess the cap rates and coverages and then for the second question, maybe just a little bit bigger picture.

[Analyst] (JPMorgan): Yeah, couple questions. I guess, on the first one, for this acquisition and the other acquisition, can you talk about pricing, I guess, the cap rates and coverages? And then for the second question, maybe just a little bit bigger picture. I know you bought some stock back in the quarter, but you also went through all the, you know, debt maturities coming due over the next couple of years. How are you thinking about today, kind of buybacks versus delevering?

Mike Mueller: Yeah, couple questions. I guess, on the first one, for this acquisition and the other acquisition, can you talk about pricing, I guess, the cap rates and coverages? And then for the second question, maybe just a little bit bigger picture. I know you bought some stock back in the quarter, but you also went through all the, you know, debt maturities coming due over the next couple of years. How are you thinking about today, kind of buybacks versus delevering?

Speaker #3: I know you bought some stock back in the quarter. But you also went through all the debt maturities coming due over the next couple of years.

Speaker #3: How are you thinking about today, kind of buybacks versus de-levering? Well, let me answer the first part of that, Mike. The coverage on both of these were very strong.

Edward K. Aldag, Jr.: So let me answer the first part of that, Mike. The coverage on both of these were very strong. The cap rates are also very attractive. As you know, it's not our policy—it is our policy not to go disclose the each individuals on the various properties, but these are very strong, both on the coverage and from our standpoint on the cap rate.

Speaker #3: The cap rates are also very attractive, as you know. It's not our policy. It is our policy, not to go. Disclose that each individual's on the various properties, but these are very strong both on the coverage and from our standpoint on the cap rate.

Speaker #3: Going forward, Mike, on the balance sheet, again, we invested what roughly $25 million in our own stock over the quarter relatively modest amount. We'll continue to evaluate when it's appropriate to be in the market with the stock.

R. Steven Hamner: Going forward, Mike-

[Analyst] (JPMorgan): Okay.

Mike Mueller: Okay.

R. Steven Hamner: on the balance sheet, and we invested what roughly $25 million in our own stock over the quarter, relatively modest amount. We'll continue to evaluate when it's appropriate to be in the market with the stock. We have multiple opportunities that I tried to summarize very briefly in my prepared remarks to address the upcoming maturities and have a high level of confidence that we'll have some attractive options for addressing that, obviously, beginning this year as we have the very very low rate euro issuance coming due in October.

Speaker #3: We have multiple opportunities that I tried to summarize very briefly in my prepared remarks to address the upcoming maturities and have a high level of confidence that we'll have some attractive options for addressing that.

Speaker #3: Obviously, beginning this year, as we have the very, very low rate euro issuance coming due in October. Okay. Thank you. Our next question will come from the line of Vikram Malhotra with Mizuho.

[Analyst] (JPMorgan): Okay. Thank you.

Mike Mueller: Okay. Thank you.

Operator: Our next question will come from the line of Vikram Malhotra with Mizuho. Please go ahead.

Speaker #3: Please go ahead. Morning. Thanks for taking the questions. I guess two ones. One, just bigger picture. You mentioned the acquisitions. I'm just wondering sort of as a portfolio stands today, whether it's just non-core or international.

Vikram Malhotra: Morning. Thanks for taking the questions. I guess two ones. One, just, you know, bigger picture. You know, you mentioned the acquisitions. I'm just wondering, sort of as the portfolio stands today, whether it's, you know, just non-core or international, can you just talk about potential sales and give us an update on, like, how the buyer pool has shaped up? What sort of capital is still interested in, you know, owning hospital real estate?

Speaker #3: Can you just talk about potential sales and give us an update on how the buyer pool has shaped up, what sort of capital is still interested in owning hospital real estate?

Speaker #3: So, Vikram, if I understood your question correctly, there still continues to be a very strong market for people interested in acquiring our properties. We get calls often.

Edward K. Aldag, Jr.: ... If I understood your question correctly, there still continues to be a very strong market for people interested in acquiring our properties. We get calls often, but where we are today, we are much more likely to be in an acquisition mode than a disposition mode. We'll do dispositions, as we review various items and think it's appropriate for us, but we are more in an acquisition mode.

Speaker #3: But where we are today, we are much more likely to be in an acquisition mode than a disposition mode. We'll do dispositions as we review various items and think it's appropriate for us.

Speaker #3: But we are more in an acquisition mode. And then I guess just on that acquisition point, just looking at the different I guess sub-asset classes, behavioral leaving hospital aside, I'm wondering sort of the opportunity set when you look at post-acute and behavioral.

Vikram Malhotra: And then I guess just on that acquisition point, just looking at the different, I guess, sub-asset classes, you know, behavioral, leaving hospital aside, I'm wondering sort of the opportunity set when you look at post-acute and behavioral, are there any specific focus areas, any types of assets? And I'm wondering just if you look to sort of maybe, I don't want to call it expand, but maybe shift the focus in terms of types of, you know, healthcare/hospital settings in terms of acquisitions.

Speaker #3: Are there any specific focus areas, any types of assets? And I'm wondering just if you'd look to sort of maybe I don't want to call it expand, but maybe shift the focus in terms of types of healthcare/hospital settings.

Speaker #3: In terms of acquisitions, sure. Our focus will continue to be general acute care, which it has been through the vast majority of the life of Medical Properties.

Edward K. Aldag, Jr.: Sure. Our focus will continue to be general acute care, which it has been, through the vast majority of the life of Medical Properties. But we will continue to look at post-acute, but that's primarily, almost exclusively in the rehab sector, which we've been very strong on since the inception of the company. We're still big believers in behavioral. In the US, behavioral softness has not come from lack of demand, but lack of ability to have nurses and staff at each of the facilities. In the UK, it's much more of a funding issue with the NHS. If you follow the UK, you'll know that the need is there, the desire is there. It's just more of a political funding standpoint.

Speaker #3: But we will continue to look at post-acute, but that's primarily almost exclusively in the rehab sector, which we've been very strong on since the inception of the company.

Speaker #3: We're still big believers in behavioral in the US. Behavioral softness is not come from lack of demand, but lack of ability to have nurses and staff at each of the facilities.

Speaker #3: In the UK, it's much more of a funding issue with NHS. If you follow the UK, you'll know that the need is there. The desire is there.

Speaker #3: It's just more of a political funding standpoint. Still believers in both sectors, but probably the biggest acquisitions we'll make today will be in general acute care, followed by post-acute care being rehab.

Edward K. Aldag, Jr.: Still believers in both sector, but probably the biggest acquisitions we'll make today will be in general acute care, followed by, post-acute care being rehab.

Speaker #3: Thank you. Our next question will come from the line of Beryl Granath with Bank of America. Please go ahead. Hi. Thank you for taking my question.

Vikram Malhotra: Thank you.

Operator: Our next question will come from the line of Farrell Granath with Bank of America. Please go ahead.

Farrell Granath: Hi, thank you for taking my question. This is Farrell Granath. I just wanted to also dig in a little bit more on your acquisitions. Just when thinking about Europe versus the US, especially now that we've seen some pressures just on public pay with headlines and reimbursement rates, does that weigh in on how you're evaluating your pipeline? Or can you give a quantifiable qualitative of how you think about your pipeline in both regions?

Speaker #3: This is Beryl Granath. I just wanted to also dig in a little bit more on your acquisitions. Just when thinking about Europe versus the US, especially now that we've seen some pressures just on public pay with headlines and reimbursement rates, does that weigh in on how you're evaluating your pipeline?

Speaker #3: Or can you give a quantifiable qualitative of how you think about your pipeline in both regions? That's a good question, Beryl. And as you know, we're roughly 50/50 now, 50% of the United States and 50% outside of the United States.

Edward K. Aldag, Jr.: That's a good question, Farrell. As you know, we're roughly 50/50 now, 50% in the United States and 50% outside of the United States. Still believe that the United States has the best healthcare in the world, and we obviously will continue to focus here, but it is less political outside of the United States, and so we like our investments outside of the United States very strongly. We're in nine different countries. We'll continue to invest in the countries that we're in, and we'll continue to look for expansion places out in Europe and places where we are not.

Speaker #3: I still believe that the United States has the best healthcare in the world, and we obviously will continue to focus here. But it is less political outside of the United States.

Speaker #3: And so we like our investments outside of the United States very strongly. We're in nine different countries. We'll continue to invest in the countries that we're in.

Speaker #3: And we'll continue to look for expansion in places in Europe, in places where we are not. We still feel very good about where healthcare in general is in the United States and feel very good that there we feel very strongly that they'll continue to be small ups and downs, but we don't think there'll be any big ups and downs in the reimbursement in the United States.

Edward K. Aldag, Jr.: We still feel very good about where healthcare in general is in the United States and feel very good that they'll. We feel very strong that they'll continue to be small ups and downs, but we don't think there'll be any big ups and downs in the reimbursement in the United States.

Speaker #3: Thank you. And I guess also on that, when thinking about the people who are selling, are these in the properties that you're acquiring? Are these marketed deals?

Farrell Granath: Thank you. And I guess also on that, when thinking about the people who are selling, and the properties that you're acquiring, are these marketed deals? Are you having reverse inquiries? Are these also just operators that you have past business with? Just curious how that pipeline is building out.

Speaker #3: Are you having reverse inquiries? Are these also just operators that you have past business with? Just curious how that pipeline is building out. Yeah.

Edward K. Aldag, Jr.: Yeah, it's probably 50% or slightly more of people that we've already done business with, existing tenants or tenants that have formerly been our tenants. There's still a very strong pipeline of people who know who we are, that are looking to make acquisitions and to use our type of funding for those acquisitions. I would say most of the deals that come to us outside of our existing tenants are marketed transactions.

Speaker #3: It's probably 50% or slightly more of people that we've already done business with, our existing tenants or tenants that have formerly been our tenants.

Speaker #3: There's still a very strong pipeline of people who know who we are, that are looking to make acquisitions and to use our type of funding for those acquisitions.

Speaker #3: I would say most of the deals that come to us outside of our existing tenants are marketed transactions. Beryl, I'll just point out in addition, just a little bit, we did a pretty limited amount, $60 million in total.

R. Steven Hamner: Farrell, I'll just point out in addition, just a little bit, we did a pretty limited amount, $60 million in total. That's a result of actually many quarters of negotiation and exploration. So it's not just something that generates in just the quarter. We're able to be, and we are being very selective. Right now, again, we still want to see our cost of capital improve. And the point I think we want to make is, as that happens, there is a pretty vibrant market. The fact that we did only $60 million in two transactions is not indicative of the size and vibrancy of the market.

Speaker #3: That's a result of actually many quarters of negotiation and exploration. So it's not just something that generates in just in the quarter. We're able to be, and we are being very selective right now.

Speaker #3: Again, we still want to see our cost of capital improve. And the point, I think, we want to make is as that happens, there is a pretty vibrant market.

Speaker #3: The fact that we did only $60 million in two transactions is not indicative of the size and vibrancy of the market. We could have—I'll put it this way—there were many more transactions that were available that we could have done, that we evaluate.

R. Steven Hamner: We could have, I'll put it this way, there were available many more transactions that we could have done, that we evaluate. But again, we're being very selective.

Speaker #3: But again, we're being very selective. Thank you very much, Color. Our next question is a follow-up from the line of Michael Carroll with RBC Capital Markets.

Farrell Granath: Thank you very much. That was great color.

Operator: Our next question is a follow-up from the line of Michael Carroll with RBC Capital Markets. Please go ahead.

Speaker #3: Please go ahead. Yep. Thanks, I guess. Ed or Rosa, I wanted to follow up and circle back on the comments related to HSA. Can you remind us, is that operator cash flow positive today with the rent fully ramped?

Michael Carroll: Yep, thanks. I guess, Ed or Rosa, I wanted to follow up and circle back on the comments related to, HSA. Can you remind us, is that operator cash flow positive today, with the rent fully ramped? I know that you indicated that last quarter, that their coverage was above one on the fully rent ramped, but obviously, it takes time for cash collections to pick up to equal that.

Speaker #3: I know that you indicated that last quarter that their coverage was above 1 on the fully rent ramped. But obviously, it takes time for cash collections to pick up to equal that.

Speaker #3: Yeah. The cash collections as Rosa pointed out are not where any of us would like to see them. However, if you look at this from where they came from, excuse me, not just as a typical startup, they actually started out in the whole picking up the steward properties.

Edward K. Aldag, Jr.: Yeah, the cash collections, as Rosa pointed out, are not where any of us would like to see them. However, if you look at this from where they came from, excuse me, not just as a typical startup, they actually started out in the hole, picking up the Steward properties. We're very pleased with where they are. We obviously want them to be much better. We talked about, they're being able to in Q2, that we believe that they'll be totally independent, acquiring the Meditech license and all that goes along with that, taking great steps in the cash collections, and we, we hope and, and feel good about their ability to do better than that. Where they are right now is still continuing to be at 1 times full rent coverage.

Speaker #3: We're very pleased with where they are. We obviously want them to be much better. We talked about there being able to in the second quarter that we believe that there'll be totally independent acquiring the Meditech license and all that goes along with that, taking great steps in the cash collections.

Speaker #3: And we hope and feel good about their ability to do better in that. Where they are right now is still continuing it to be at one-time full rent coverage.

Speaker #3: Okay. And then just last one for me. I mean, does HSA or NOR need to be does NPW needing to provide them working capital loans still?

Michael Carroll: Okay. And then just last one for me. I mean, does HSA or Noor need, does MPW need to provide them working capital loans still, or have they weaned off of those specific loans and are able to work with what they have on their own balance sheets?

Speaker #3: Or have they weaned off of those specific loans and are able to work with what they have on their own balance sheets? Yeah. We have not provided any working additional working capital loans for either one of those entities.

Edward K. Aldag, Jr.: Yeah, we have, we have not provided any additional working capital loans for either one of those entities. We have provided HSA with funding to help them acquire the Meditech license, and with Noor, the last fundings that we were participating in those were leftover Prospect bills.

Speaker #3: We have provided HSA with funding to help them acquire the Meditech license. And with NOR, the last fundings that we were participating in those were leftover prospect bills.

Speaker #3: Okay. Great. Thank you. And I will now turn the call back over to Ed Aldag for closing comments. Regina, thank you very much. And again, thank all of you for listening today.

Michael Carroll: Okay, great. Thank you.

Operator: I will now turn the call back over to Ed Aldag for closing comments.

Edward K. Aldag, Jr.: Regina, thank you very much. And again, thank all of you for listening today. And as always, if you have any additional questions, please don't hesitate to reach out to us. Thank you very much.

Speaker #3: And, as always, if you have any additional questions, please don't hesitate to reach out to us. Thank you very much. Ladies and gentlemen, that concludes today's call.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Q4 2025 Medical Properties Trust Inc Earnings Call

Request a DemoDemo

MPW

Medical Properties Trust

Earnings