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Second and third sentences of the first graph under PORTFOLIO UPDATE AND FUTURE OUTLOOK section should read: Based solely on the portfolio as of December 31, 2011, the Ernest transactions and the related financing transactions, the Company estimates that annualized Normalized FFO per share would approximate $0.88 to $0.92 per diluted share. The Florence Hospital in Arizona, which is expected to open in the first quarter of 2012, will add approximately $0.03 of FFO annually per diluted share, as previously announced.
The corrected release reads:
MEDICAL PROPERTIES TRUST IN $400 MILLION TRANSACTION WITH ERNEST HEALTH, INC. TO ADD 16 HOSPITALS TO PORTFOLIOFFO Accretion of 26%
Medical Properties Trust, Inc. (NYSE: MPW) today announced that it has agreed to a series of transactions with Ernest Health, Inc. that will add 16 existing post acute care hospitals to MPT’s investment portfolio for approximately $300 million. In addition, the Company will acquire a significant percentage of Ernest Health’s operations, in partnership with Ernest Health’s management team. This $400 million transaction increases Medical Properties Trust’s overall assets by 25 percent, to more than $2.0 billion.
Upon completion of the transactions, which is subject to regulatory and other customary conditions, MPT is expected to have investments in 78 hospital facilities in 24 states, total assets of approximately $2.0 billion and no tenant group that represents more than 20% of its total assets. The transactions are expected to add approximately $0.19 per share in funds from operations in the 12 months following the closing, which is anticipated to occur during the first quarter of 2012. Based on MPT’s most recently disclosed expectations of future FFO, the incremental FFO from the Ernest transactions will represent an increase of 26%.
Founded in 2003, Ernest Health, Inc. is one of the nation’s leading operators of long-term acute care hospitals (“LTACHs”) and inpatient rehabilitation hospitals (“IRFs”). Headquartered in Albuquerque, New Mexico, Ernest operates 16 properties (8 LTACHs and 8 IRFs) with 606 beds across nine states. Subsequent to the transactions, Ernest will be managed pursuant to agreements with current executive management, including Darby Brockette, Ernest’s Chief Executive Officer.