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Medical Properties Trust (NYSE:MPW) Q4 earnings, released on Thursday, matched the Wall Street consensus as the healthcare REIT works through issues with tenants including Prospect Medical Holdings and Pipeline Health.
The hospital landlord introduced 2023 normalized FFO per share guidance of $1.50-$1.65, less than the $1.75 consensus.
“Our initial outlook for this year contemplates a conservative scenario due to the underperformance of Prospect’s hospitals that we first communicated over a year ago, as well as the process by which we expect to recover our full investment in Prospect’s Pennsylvania and Connecticut hospitals,” said Chairman, President, and CEO Edward K. Aldag, Jr.
“The vast majority of our portfolio is positioned to support a significant inflation-based increase in cash rents for 2023,” he said.
Q4 normalized FFO per share of $0.43, matching the consensus, fell from $0.45 in Q3 and from $0.47 in Q4 2021.
Not included in normalized FFO were a $171M impairment related to four properties leased to Prospect Medical Holdings in Pennsylvania and the write-off of ~$112M in unbilled Prospect rent.
Q4 revenue of $380.5M, topping the $373.0M consensus, increased from $352.3M in Q3 and dropped from $409.3M in Q4 2021.
Q4 total expenses of $224.1M vs. $215.2M in the prior quarter and $224.3M in the year-ago quarter. Interest cost of $92.0M increased from $88.1M in Q3 and declined from $94.0M in Q4 2021. Real estate depreciation and amortization of $81.5M compared with $81.9M in the prior quarter and $84.2M in the year-ago quarter.
Conference call at 11:00 AM ET.
In October, Medical Properties (MPW) agreed to sell three Connecticut hospitals to Prospect Medical for $457M.
Earlier, Medical Properties (MPW) FFO of $0.43 beats in-line, revenue of $380.48M beats by $7.49M