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

Financial Performance:

• Reported net income of $202 million ($0.34 per share) for the quarter ended September 30, 2026, compared to a net loss of $78 million ($0.13 per share) in the same period in 2025.
• Reported Normalized Funds from Operations (NFFO) of $64 million ($0.11 per share) for the quarter, down from $77 million ($0.13 per share) in the prior year period.
• Total revenues for the quarter were $250.1 million, up from $237.5 million in the prior year period.
• Rent billed revenue increased to $195.3 million from $181.0 million in the prior year period.
• Total expenses for the quarter were $263.9 million, compared to $246.1 million in the prior year period.
• Interest expense was $153.1 million for the quarter, up from $132.4 million in the prior year period.
• Recognized a gain of $157.8 million on the sale of real estate for the quarter, compared to a loss of $9.1 million in the prior year period.
• Recorded a gain of $69.5 million related to debt refinancing and unutilized financing benefits for the quarter, compared to a cost of $14,000 in the prior year period.
• Total assets stood at $14.4 billion as of September 30, 2026, down from $15.0 billion as of December 31, 2025.
• Debt, net, was $9.26 billion as of September 30, 2026, down from $9.70 billion as of December 31, 2025.
• Deferred revenue was $16.9 million as of September 30, 2026, down from $19.3 million as of December 31, 2025.
• Cash and cash equivalents were $599.3 million as of September 30, 2026, up from $540.9 million as of December 31, 2025.
• For the nine months ended September 30, 2026, net income was $232.9 million ($0.39 per share), compared to a net loss of $293.5 million ($0.49 per share) in the prior year period.
• NFFO for the nine months ended September 30, 2026, was $238.3 million ($0.40 per share), compared to $239.7 million ($0.40 per share) in the prior year period.

Guidance and Future Outlook:

• Expects portfolio cash rents to exceed $1.0 billion in 2027, even after accounting for the reduction in rental income from assets sold in the third quarter.
• The 2027 cash rent estimate includes conservative assumptions regarding rental income from cash basis tenants, including HSA.

Business Segments and Product Lines:

• The portfolio includes 365 properties and approximately 37,000 licensed beds leased to or mortgaged by 52 hospital operating companies across the United States and nine other countries (United Kingdom, Switzerland, Germany, Spain, Finland, Colombia, Italy, and Portugal).
• Asset composition as of September 30, 2026, includes $8.3 billion in general acute facilities, $2.4 billion in behavioral health facilities, and $1.6 billion in post-acute facilities.
• Completed the sale of its remaining interest in five hospitals in Utah for approximately $174 million.
• Completed the sale of its interest in the real estate of two hospitals in Idaho to affiliates of Intermountain Health for approximately $371 million.
• Completed a private offering of approximately $2.4 billion in secured notes, with proceeds used to repay existing debt, including the 2026 notes and approximately 50% of the 2027 notes.
• HSA engaged Ovation Healthcare to oversee operations across its portfolio to improve billings and collections following revenue cycle management challenges.

Market and Competitive Landscape:

• Healthcare providers globally are seeking new solutions to capital challenges, which MPT states makes its business model more important than ever.
• Recent asset sales significantly exceeded the Company's original investments, demonstrating the overall value of its hospital real estate portfolio.

Risks and Challenges:

• HSA faced continued revenue cycle management challenges that precluded the payment of September rent, reducing NFFO by two cents during the quarter.
• The Company provided additional working capital support to HSA during the quarter.
• Forward-looking statements note risks including projected rents being lower than anticipated, potential delays in rent realization, and uncertainties regarding the timing and outcome of causes of action related to Prospect Medical Holdings, Inc.
• Risks include the inability to attain leverage, liquidity, and cost of capital objectives, as well as the ability of tenants to satisfy contractual obligations and remain solvent.
• Potential negative impacts from changes to Medicaid funding introduced by the OBBBA and risks associated with litigation or regulatory proceedings are noted.

Management Commentary and Tone:

• Edward K. Aldag, Jr., Chairman, President, and CEO, stated that results demonstrate decisive steps taken to strengthen the balance sheet and create flexibility to further reduce debt and pursue selective growth opportunities.
• Management expressed confidence that the Company is well positioned to create long-term value for shareholders as healthcare providers seek capital solutions.
• Management noted they are closely monitoring operations at HSA.

Other Key Points:

• Paid a regular quarterly dividend of $0.09 per share in October 2026.
• The asset sales and debt refinancing provided approximately $680 million in cash proceeds available for debt repayment and balance sheet improvement.
• The debt refinancing resulted in a $70 million gain in the quarter.
• The Company has scheduled a conference call and webcast for October 29, 2026, at 11:00 a.m. Eastern Time to present results.
• The Company uses its Investor Relations website (www.mpt.com) as a primary means of disclosing material nonpublic information in compliance with Regulation FD.