Medical Properties Trust, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported a net loss of $3 million ($0.01 per share) for the quarter ended June 30, 2026, compared to a net loss of $98 million ($0.16 per share) in the same period in 2025.
• Normalized Funds From Operations (NFFO) totaled $92 million ($0.15 per share) for the quarter, an increase from $81 million ($0.14 per share) in the prior year period.
• Total revenues for the quarter were $259.3 million, up from $240.4 million in the prior year period; for the six months ended June 30, 2026, total revenues were $511.3 million compared to $464.2 million in the prior year period.
• Rent billed for the quarter was $203.4 million, compared to $177.9 million in the prior year period.
• Total expenses for the quarter were $250.7 million, compared to $233.5 million in the prior year period.
• Interest expense for the quarter was $135.3 million, compared to $129.7 million in the prior year period.
• Real estate depreciation and amortization for the quarter was $69.5 million, compared to $66.7 million in the prior year period.
• Real estate and other impairment charges, net, were $16.8 million for the quarter, compared to $1.4 million in the prior year period.
• Total assets were $14.75 billion as of June 30, 2026, down from $15.00 billion as of December 31, 2025.
• Debt, net, was $9.70 billion as of June 30, 2026, compared to $9.70 billion as of December 31, 2025.
• Cash and cash equivalents were $396.6 million as of June 30, 2026, down from $540.9 million as of December 31, 2025.
• Deferred revenue was $17.1 million as of June 30, 2026, down from $19.3 million as of December 31, 2025.
• Total equity was $4.50 billion as of June 30, 2026, down from $4.61 billion as of December 31, 2025.

Guidance and Future Outlook

• Management indicated a commitment to continued debt reduction and fortifying the balance sheet while pursuing opportunistic growth.
• The Company expects to close a private offering of approximately $2.4 billion of secured notes imminently to repay existing debt, including 2026 notes and approximately 50% of 2027 notes.
• The Company expects to receive approximately $172 million in cash proceeds from an agreed asset sale in the third quarter.
• The Company received approximately $100 million in cash proceeds from the initial public offering of Infracore SA, with an additional $35 million expected later in the third quarter.
• Management expects transition tenants to ramp rent payments as anticipated.

Business Segments and Product Lines

• The portfolio includes 373 properties with approximately 38,000 licensed beds leased to or mortgaged by 51 hospital operating companies across nine countries.
• Asset composition includes $8.8 billion of general acute facilities, $2.4 billion of behavioral health facilities, and $1.7 billion of post-acute facilities.
• Entered into an arrangement with Scion, Lifepoint, and Lifepoint Behavioral to combine leases into a single amended master lease, enhancing diversification and credit profile.
• Exchanged three Scion properties for one Lifepoint property, generating an approximate $7 million gain.
• Remaining Scion exposure is limited to one facility following the aforementioned agreements.
• Advanced an additional $50 million in working capital to HSA; $20 million has been repaid, with an additional $20 million expected to be repaid in August.

Market and Competitive Landscape

• The Company operates as one of the world's largest owners of hospital real estate with facilities across the United States, United Kingdom, Switzerland, Germany, Spain, Finland, Colombia, Italy, and Portugal.
• The Company's financing model facilitates acquisitions and recapitalizations, allowing operators to unlock real estate value for facility improvements and technology upgrades.

Risks and Challenges

• Risks include the potential for projected rents to be lower than anticipated or realized later than expected.
• Uncertainty regarding the timing, outcome, and terms of causes of action for Prospect Medical Holdings, Inc. and other recoveries on remaining investments.
• Risk that previously announced property sales, loan repayments, or capital recycling transactions may not occur as anticipated.
• Risk of inability to attain leverage, liquidity, and cost of capital objectives within a reasonable time period.
• Risk that the Company cannot obtain or modify debt financing on attractive terms due to changes in interest rates.
• Risk that tenants, operators, or borrowers may fail to satisfy contractual obligations or remain solvent.
• Risk that tenant operations may be negatively impacted by changes to Medicaid funding introduced by the OBBBA.
• Risks associated with litigation, regulatory proceedings, and governmental actions affecting properties.

Management Commentary and Tone

• Edward K. Aldag, Jr., Chairman, President, and CEO, stated the Company is taking "decisive steps to strengthen our balance sheet" through refinancing and strategic asset sales.
• Management expressed confidence in "strong performance trends across our diverse portfolio of global operators."
• The tone reflects a focus on balance sheet fortification and evaluating opportunities for opportunistic growth.

Other Key Points

• Announced a privately negotiated $2.4 billion refinancing transaction with a discount captured of approximately $123 million, significantly reducing debt maturing through 2028.
• Paid a regular quarterly dividend of $0.09 per share in July 2026.
• Conference call and webcast scheduled for August 10, 2026, at 11:00 a.m. Eastern Time.
• The Company uses its Investor Relations website (www.mpt.com) as a primary means of disclosing material nonpublic information in compliance with Regulation FD.
• Consolidated balance sheets and income statements provided for the three and six months ended June 30, 2026, and 2025.