Medical Properties Trust Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Carroll - RBC Capital Markets - Analyst : Yeah, thanks, Steve, I wanted to follow up on your -- I guess, your prepared remarks, your last two comments. Do you think that there is risk to the Steward transitioned assets, those new operators and being able to have the ramp up versus what you expect given your comments regarding the issues within the Steward bankruptcy process and then not being able to collect the payments that are potentially owed to them?

Question: Michael Carroll - RBC Capital Markets - Analyst : Okay. And then can you talk about the $40 million investment. Was that made during the quarter? What type of asset did you get back from that? And are you getting rent on that asset now? And or do you plan on selling that asset in the near term?

Question: Michael Carroll - RBC Capital Markets - Analyst : Okay. And then just last for me. Were there any other investments that occur that didn't see the supplemental section highlight your investments in the (inaudible) this time around. And your debt seemed a little bit higher than what I would have expected. So is there any other cash outflows that we should be aware of that kind of explain some of that?

Question: Michael Carroll - RBC Capital Markets - Analyst : Okay. So just those -- just that $40 million deal on the Infracore deal?

Question: Georgi Dikov - Mizuho Securities - Analyst : Hi, this is Georgi on for Vikram. Can you just talk sort of what are you monitoring on the regulatory side and any potential Medicaid cuts? Like what are your expectations in a scenario where you see some severe budget cuts?

Question: Georgi Dikov - Mizuho Securities - Analyst : Okay. And if I may squeeze a second question. Have you -- do you expect to provide any loans to any of the operators? And do you currently have any tenants on your watch list that you're closely monitoring?

Question: Georgi Dikov - Mizuho Securities - Analyst : Great, thank you for taking my question.

Question: John Kilichowski - Wells Fargo - Analyst : Good morning. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2025 / 3:00PM, MPW.N - Q1 2025 Medical Properties Trust Inc Earnings Call Thank you. My question is just on two operators. You mentioned no operators on the watch list, but I know that there were a couple of situations we were watching. There was an operator in Colombia dealing with some government holding back of reimbursement. And then there was another one that was 1% of assets that you had gotten $10 million for last year, but I think that was a onetime chunk. Could you give some color on how those processes are going?

Question: John Kilichowski - Wells Fargo - Analyst : Okay. And then maybe just on prospects following the court approval. How do you expect that process to go, I guess, as far as timing is concerned?

Question: Omotayo Okusanya - Deutsche Bank - Analyst : Yes good morning everyone. First of all, just as I'm always impressed with all the details it gives in the operational overview, which I find it very helpful. In terms of the cash ramp-up for the transitional tenants, could you just give us some that they transfer kind of all the excess cash flow to kind of ramp up to that $40 million a quarter. Is there some type of set math of based on how much they earned that quarter, how much they have to kind of pay you? I'm just trying to understand how that works.

Question: Omotayo Okusanya - Deutsche Bank - Analyst : Got you. Okay. So that's helpful. And then in terms of, again, at March 31, the drawdown on the line to kind of make sure you guys are okay with the covenant. Just curious now that you've kind of settled in with the write-downs associated with prospects. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2025 / 3:00PM, MPW.N - Q1 2025 Medical Properties Trust Inc Earnings Call Is that something you would expect to occur again at the end of a quarter or now that you kind of solidified what your write-down numbers are, you kind of have much more sense of what your coverage is and you may not have to do that going forward.

Question: Omotayo Okusanya - Deutsche Bank - Analyst : That's helpful. Thank.