Medical Properties Trust Executes $245M Sale-Leaseback

BIRMINGHAM, AL and DEIDESHEIM, GERMANY-Medical Properties Trust, Inc. has entered into a definitive agreement with leading German rehabilitation hospital operator RHM Klinik- und Altenheimbetriebe GmbH & Co. KG (“RHM”) to acquire 11 facilities in Germany in a sale / leaseback.

The transaction is valued at $244.7 million based on a EUR/USD exchange rate of 1.33, or €184.0M (including €9.0 million of transfer tax paid by MPT).

Under the terms of the transaction, MPT will acquire the real estate assets of 11 facilities located throughout Germany and lease them back to the operator, RHM, in a 27-year master lease structure. The RHM portfolio consists of nearly 1,800 beds with average occupancy rates significantly above the average rates for German rehabilitation clinics. RHM is based in Deidesheim, Germany and owned by Waterland Private Equity Investments, a leading European private equity firm, which will maintain its operational ownership.

“This acquisition is fully aligned with our long-stated strategy to diversify our portfolio while remaining focused on hospital investments,” said Edward Aldag, Jr., chairman, president and CEO of Medical Properties Trust. “This investment will allow MPT and its shareholders to benefit from the stable German economy, favorable demographic trends and the operational expertise of RHM, all of which we expect will help drive FFO growth.

“As the only U.S. healthcare REIT focused exclusively on funding hospitals and other facilities where patients must be admitted by doctors, MPT is continuing to leverage its unparalleled expertise in healthcare real estate, healthcare finance and healthcare operations in its investment strategy,” continued Aldag.

The acquisition further diversifies MPT's asset portfolio and adds significant scale. With this acquisition, which is consistent with the company's successful investment strategy, MPT is entering a new, stable market with dynamics that the company believes are highly complementary and similar to the U.S. market. MPT expects to leverage its extensive U.S. hospital expertise as it expands to new geographies. The deal also is expected to led to further acquisition opportunities.

As a percentage of gross domestic product, Germany has the fourth largest global healthcare system, and guarantees its citizens access to, and coverage under, a comprehensive health insurance program. German citizens can seek coverage under the government-regulated public health insurance system, private coverage from an insurance company, or a combination of both options.

Medical Properties Trust, Inc. is a Birmingham,AL-based self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. These facilities include inpatient rehabilitation hospitals, long-term acute care hospitals, regional acute care hospitals, ambulatory surgery centers and other single-discipline healthcare facilities.