Medical Properties Trust (MPW) announces lease transaction with HCA Healthcare.

Medical Properties Trust (MPW) announced today that HCA Healthcare has agreed to acquire the operations of five Utah hospitals currently leased to Steward Health Care System.  As part of the operations transfer, HCA has entered into a new 15-year master lease with MPW at the current cash rate.  Subject to regulatory approval, the HCA operations purchase is expected to close in the first half of 2022.

The five properties were purchased by MPW for $1.2 billion and represent approximately 5% of the company's gross assets.  According to CEO Edward K. Aldag, Jr., the new master lease with HCA "strongly validates our initial underwriting and purchase price for these properties."  Upon closing of the lease transfer, MPW noted that the percentage of its portfolio leased to Steward would decrease to approximately 17%.

Established in 2004, Medical Properties Trust is an equity REIT specializing in the acquisition and management of higher-acuity healthcare properties in the U.S., Australia, and Europe. The current portfolio includes investments in 446 facilities with approximately 47,000 licensed beds, segmented across acute care hospitals (80% of revenues), in-patient rehab hospitals (11%), and behavioral health facilities (6%). MPW has a total market capitalization of approximately $22 billion and is a member of the S&P MidCap 400 index.