Medical Properties Trust, Inc. (MPW) reported Thursday that its first-quarter Funds from operations or FFO was loss of $639.96 million, compared to last year's profit of $186.28 million.
FFO loss per share was $1.07, compared to profit of $0.31 a year ago.
The latest results included around $693 million or $1.16 per share of impairments, including the full reserve of the company's approximate $360 million loan to its tenant Steward Health Care System, which recently filed for Chapter 11 bankruptcy Steward, along with its equity investment in Steward and its loan to the International Joint Venture.
Normalized Funds from Operations or NFFO was $142 million or $0.24 per share, compared to $222 million or $0.37 per share in the year earlier period. The primary cause of the decrease in NFFO year-over-year was the significant decrease in revenue related to Steward.
Net loss was $736 million or $1.23 per share, compared to prior year's net income of $33 million or $0.05 per share.
Total revenues for the period declined to $271.32 million from last year's $350.21 million.
Analysts on average expected the company to report earnings of $0.07 per share on revenues of $276.45 million, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
Edward Aldag, Jr., Chairman, President and Chief Executive Officer, said, "We continue to execute a capital allocation strategy that we now expect will exceed our initial target of $2.0 billion in liquidity transactions in 2024. … Regarding Steward's recent filing for Chapter 11 bankruptcy, we expect this process may facilitate an orderly transition of Steward's operations to new operators. As Steward continues these efforts, MPT has agreed to provide $75 million in DIP funding to ensure continued operations and continuity of patient care."
In pre-market activity on the NYSE, Medical Properties Trust shares were losing around 5.2 percent to trade at $4.23.
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