Thomas Barwick Shares Medical Properties Trust ( NYSE: MPW ), also called MPT, dropped 7.6% in Thursday premarket trading as Q2 earnings met the average analyst estimate, but the company agreed to limit its cash dividend in a credit amendment. Q2 normalized FFO per share of $0.
23 , in line with the $0.23 consensus, slipped from $0.24 in Q1 and $0.
48 in last year's Q2. The healthcare REIT's net loss of $0.54 per share included $400M in real estate gains from asset transactions and $700M in impairments and adjustments.
In May, MPT's largest tenant, Steward Health, filed for Chapter 11 bankruptcy. Total revenue of $266.6M, topping the average analyst estimate of $264.
7M, fell from $271.3M in the previous quarter and $337.4M in the year-ago period.
"MPT took decisive action to generate more than $2.5B of liquidity year-to-date — well above our initial target for the year — as well as to expedite debt paydown, said Chairman, President and CEO Edward K. Aldag, Jr.
"The vast majority of our portfolio continues to perform well, and we remain focused on executing our strategy to demonstrate the tremendous value embedded in our platform." After the quarter ended, MPT ( MPW ) amended its credit facility, reducing its revolver commitment to $1.28B from $1.
4B, resetting its net worth covenant to $5.0B from $6.7B, and modifying certain other covenants through Sept.
30, 2025. If Steward's hospital operations are transitioned to other operators more rapidly, the company will have the right to terminate the amendment provisions earlier than Sept. 30, 2025.
As part of the credit facility commitment, MPT ( MPW ) agreed to limit the cash component of its quarterly dividends to no more than $0.08 per share. That compares with its current quarterly dividend of $0.
15. Q2 expenses of $246.7M climbed from $222.
4M in Q1 and sank from $529.2M a year ago. As expected, Steward paid May and June cash rent of ~$19M under its consolidated master lease and remained current on its obligations to the company’s Massachusetts partnership with Macquarie Asset Management.
Steward also made July payments as scheduled for all leased facilities. During Q2, MPT ( MPW ) closed on the sale of five previously leased hospitals for a total of $350M; sold a 75% stake in five Utah hospitals leased to CommonSpirit for $1.1B; completed a £631M (~$300M) secured financing of 27 U.
K. hospitals; sold for ~$160M seven freestanding emergency departmen t facilities and on general acute hospital in Arizona; and repaid $1.5B of debt, including all 2024 maturities.
As of June 30, 2024, MPT's portfolio included 435 facilities and ~42,000 licensed beds in nine countries. Conference call at 11:00 AM ET. Earlier, Medical Properties Trust FFO of $0.
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