GE_Jim
7 months ago
A little more color on that . From the sec filing. -- MEDICAL PROPERTIES TRUST PROVIDES UPDATE ON STEWARD HEALTH CARE
Birmingham, AL – January 4, 2024 – Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW) today announced plans to accelerate its efforts to recover uncollected rents and outstanding loan obligations from Steward Health Care System (“Steward”) and related processes designed to significantly reduce its exposure to Steward.
As disclosed in the Company’s third quarter 2023 Form 10-Q, Steward delayed paying a portion of its September and October rent to MPT. Despite its obtaining additional working capital financing and selling its non-core laboratory business in the fourth quarter of 2023, Steward recently informed MPT that its liquidity has been negatively impacted by significant changes to vendors’ payment terms. As a result, Steward has continued to make partial monthly rent payments, and total unpaid rent under its consolidated master lease with MPT is approximately $50 million as of December 31, 2023 (exclusive of approximately $50 million that was previously deferred and not currently payable related to the Norwood Hospital, which is under reconstruction).
MPT has engaged Alvarez & Marsal Securities, LLC (“A&M”) as its financial advisor and KTBS Law, LLP and Baker, Donelson, Bearman, Caldwell & Berkowitz, PC as legal advisors to advise the Company on its options to enable the recovery of uncollected rent and outstanding loans. MPT’s management team and advisors have worked closely with Steward and its own advisors to develop an action plan which, if successful, is designed to strengthen Steward’s liquidity and restore its balance sheet, optimize MPT’s ability to recover unpaid rent, and ultimately reduce MPT’s exposure to Steward.
As part of this plan, Steward is pursuing several strategic transactions, including the potential sale or re-tenanting of certain hospital operations as well as the divestiture of non-core operations. Further, Steward has committed to seeking a third-party capital partner for its managed care business, net proceeds from which will be used in part to repay all outstanding obligations to MPT. Steward has also intensified measures to improve collections and overall governance, including establishment of a transformation committee comprised of newly appointed independent directors and submission of periodic cash activity and asset sale progress reports to MPT and its ABL lenders.
To protect the value of MPT’s assets and hospital operations while Steward executes on its strategic plan, MPT has agreed to fund a new $60 million bridge loan secured by all MPT’s existing collateral plus new second liens on Steward’s managed care business, subordinate only to Steward’s ABL lenders. A portion of MPT’s existing approximately $215 million of transaction-specific and working capital loans to Steward will now also be secured by these same second liens on the managed care platform. The Company has also consented to the deferral of unpaid rent under the consolidated master lease as of December 31, 2023, as well as a limited and tapering deferral of approximately $55 million of 2024 rents, until the earlier of June 30, 2024 or the completion of anticipated asset sales. Partial cash rent payments are expected to recommence in February, including approximately $9 million in the first quarter and approximately $44 million in the second quarter of 2024.
There can be no assurance that Steward will successfully execute its plans or that the Company will recover all of its deferred rent and loans outstanding to Steward. As a result, MPT cannot be assured that Steward will make all scheduled lease payments throughout the remaining approximate 22-year fully extended term of its master lease. Accordingly, pursuant to generally accepted accounting principles, the Company expects to record a non-cash charge in the fourth quarter of 2023 to write off consolidated straight-line rent receivables of approximately $225 million, its approximately $25 million share of straight-line rent receivables related to the unconsolidated Massachusetts partnership and consolidated unpaid rent receivables of approximately $100 million (which includes the previously referenced $50 million related to the Norwood development). Furthermore, MPT routinely evaluates for indications of impairments to its real estate and other investments, including those related to Steward. Such evaluations are ongoing as of December 31, 2023, and no assurances can be provided that further impairment of real estate and non-real estate assets will not be taken with MPT’s fourth quarter 2023 reporting.
Importantly, MPT’s non-Steward portfolio continues to generate robust revenue as demonstrated in the table below, which separates Steward’s third quarter 2023 GAAP revenue from the remainder of the Company’s portfolio:
and a follow up -- As announced in early January, MPT has worked with Steward to develop an action plan designed to strengthen Steward’s liquidity and restore its balance sheet, optimize MPT’s ability to recover unpaid rent and ultimately reduce MPT’s exposure to Steward. MPT and certain of Steward’s asset backed lenders are negotiating a new bridge facility whereby it is expected, but there is no assurance, that each party will fund an initial $37.5 million to Steward, based on its achievement of certain milestones previously established in January. MPT has already funded $20 million of such amount. Any subsequent loan fundings would be contingent on Steward achieving further significant milestones that optimize the amount and timing of recoveries for MPT and Steward’s ABL lenders.
fung_derf
7 months ago
I'm guessing this has already been posted, but not good news here.
I'm not seeing any reports on the dividend, although I would expect today is the day it should be announced.
As expected, and my reason for getting out is, it no longer looks like a dividend. It now looks like a return of principal.
Attention Long-Term Shareholders of Medical Properties Trust, Inc. (MPW)
Newsfile8:30 AM (UTC-05:00) Eastern Time (US & Canada) Feb 16, 2024
Philadelphia, Pennsylvania--(Newsfile Corp. - February 16, 2024) - A recently filed securities fraud class action complaint alleges that Medical Properties Trust, Inc. (NYSE: MPW), via certain of its officers and directors, engaged in a widespread scheme to hide from investors that, contrary to the Company's public representations, its portfolio of assets were severely distressed and non-performing such that they could not make their rent payments. It is alleged that Defendants employed a number of "uncommercial transactions" to prop up MPW's non-performing assets in the short term to avoid recording impairment charges.
Current Medical Properties Trust shareholders who have held Medical Properties Trust stock since on or before July 25, 2019, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.
If you would like to learn more about this matter, you are encouraged visit https://grabarlaw.co..., contact Joshua H. Grabar at jgrabar @FH-6085. $MPW #MedicalPropertiesTrust
Attorney Advertising Disclaimer
GE_Jim
7 months ago
This may provide the management a little get up and go. From the SEC filings - On March 8, 2024 (the “Grant Date”), the Compensation Committee (the “Committee”) of the Board of Directors of Medical Properties Trust, Inc. (the “Company”) granted performance-based restricted stock unit awards (the “Awards”) to Edward K. Aldag, Jr. and R. Steven Hamner, the Company’s Chief Executive Officer and Chief Financial Officer, respectively, covering an aggregate of 2,700,000 restricted stock units (the “RSUs”) at the target level of achievement. The RSUs may be settled only in cash and the cash payment will be calculated based on the average closing price of the Company’s common stock on the five trading days ending on the vesting date. The Awards were granted under the Company’s Amended and Restated 2019 Equity Incentive Plan (the “2019 Plan”) and will be eligible to vest only if the Company’s share price reaches certain appreciation hurdles, as follows:
Stock Price Hurdle
Percentage of Target RSUs Earned
$7.00 (67% increase above the Grant
Date stock price)
100%
$8.50 (103% increase above the Grant
Date stock price)
200%
$10.00 (139% increase above the Grant
Date stock price)
300%
The purpose of the Awards is to motivate and retain these key executives to help execute the Company’s strategic business plan and restore shareholder value. In determining the appropriateness of granting, and the structure of, the Awards, the Committee was advised by its independent compensation consultant.
The actual number of RSUs to be earned pursuant to the Awards will be determined based on the trailing 20-trading day average closing price of the Company’s common stock during the four-year period ending on December 31, 2027 (the “Performance Period”). Earned RSUs will become vested on the earlier of equal quarterly installments over the first year from the date the RSUs are earned or the date that the Committee makes a determination of achievement of the performance metrics following the end of the four-year Performance Period, subject to the grantee’s continued employment through such date.
A copy of the form of award agreement for the Awards is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference. The foregoing description of the terms of the Awards is qualified in its entirety by reference to the full text of such form of award agreement.
jgrabar
8 months ago
I am sure you are aware of the ongoing class action.
However, for longer term holders who still hold MPW shares (shareholders who have held Medical Properties Trust stock since on or before July 25, 2019), a few corporate governance actions have been filed. There is still room for more. Longer holders can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.
If you would like to learn more about this matter, visit https://grabarlaw.com/the-latest/mpw-shareholder-investigation/
bar1080
9 months ago
Yes, virtually every IHUBer with enormous numbers of followers is a pumper, beloved by penny players. I'm quite familiar with Pistol Pete. His posts are rubbish, but he posts night and day. One exception might be Janice Shell who writes quality posts, that are mostly not pumping specific issues.
As far as I know, Janice hasn't played the market since the 1990s. She's stated that she has very little money and doesn't even own a car. I've found her many posts to be honest and consistent, so they are quite unlike what one usually sees.
bar1080
9 months ago
I owned stocks long before IHUB using a conventional stock broker where orders were placed by phone or in person in his office. Because commissions and taxes were so high back then there was almost no day trading. Most wealthy old geezers just owned blue chips and collected dividends, which is still a great way to do it. Almost no people my age owned stocks, but I knew a few who did it when I was in collage.
When the internet arrived, I was first exposed to pennyland idiots, most of whom lost everything in the tech crash of 2000.
I remember "paper trading" hot OTC pennies around 1996 and just about every one of them fell about 40% in a period of a month or two. I kept records. There were almost no exceptions except where a group pumped the stock and then the collapse took a little longer. Luckily, by around 1990, I had fallen in love with index funds and did well most years. Also, I always had money in bonds and banks and a good income.
Only way to really understand iHUB is if you see our local players as gambling addicts. Vegas is full of those types.
To this day I've never owned a penny stock. And never daytraded. My kids too.