Medical Properties Trust Inc Q2 2020 Earnings Call Transcript

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

Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst : Just on the JV, real quick, is that with Steward or with the Steward's management teams as individuals? I guess, who are your partners in that JV?

Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst : Okay. And then within, I guess, South America, should we view, I guess, this investment as a beachhead type of investment with the plan of getting it bigger over time, kind of similar to what you have done in Continental Europe and the U.K.? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 30, 2020 / 3:00PM, MPW.N - Q2 2020 Medical Properties Trust Inc Earnings Call

Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst : Okay. So could that market get as big where you would want to open up an office in South America, too, like you did in Europe?

Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst : Okay. And then, Steve, in the run rate guidance numbers that you provided, that assumes that your net debt-to-EBITDA ratio is near 5.5%, correct? And if so, I guess, what's included in those assumptions? Is that assuming you're overequitizing future acquisitions that you've already announced? Or is that just assume you're doing a big slug of equity to get back down to that level?

Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst : Okay. And then, I guess, last 1 for me just on the Steward investment, the incremental $200 million. Now I'm assuming that just kind of already -- those assets were already included in the master lease. So that incremental rent just kind of reduces your Steward coverage ratios by, what, 10 to 15 basis points. Is that the right way to think about it?

Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Everybody, thank you for having me. Quick question on EBITDA and coverage. I think your same-store pool requires 2 years of operating data. So I'm wondering if there's any color you could provide as to the potential impact of the acquisitions made through the end of 2018, early 2019 as they roll into the same-store pool?

Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay. And then in a broad sense, we're seeing somewhat of an exodus from some of the major cities in the U.S. I mean does this change the way that you look at your target markets at all? Or any perhaps secondary markets look more favorable?

Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : All right. That helps. And then 1 final one. How are your operators faring related to the availability of test kits? I mean based on recent news flow, we're seeing that more and more testing capacity has been promised to, say, skilled nursing facilities. But it seems like supply constraints continue to show through. So I'm wondering if your operators are really still on the top of that priority list no matter what market they're in.

Question: Mei Wen Tan - JPMorgan Chase & Co, Research Division - Analyst : This is Sarah on for Mike Mueller.

Question: Mei Wen Tan - JPMorgan Chase & Co, Research Division - Analyst : This is Sarah Tan on for Mike Mueller.

Question: Mei Wen Tan - JPMorgan Chase & Co, Research Division - Analyst : Okay. Good. Just 2 questions for me. The first one is on the Steward conversion to equity. Just wondering what triggered that at this point of time? And then the second one is on the new JV investment. Could you briefly talk about the people who are involved? Ralph and the other team members you mentioned their expertise in operating international hospitals and in Colombia.