We knew in late 2009 that the opportunities that lay in front of us would be positively transformative for Medical Properties Trust. Just to remind you, we purposely elected to endure some short-term dilution in order to obtain the results you’re seeing today. We will always manage this company for the long-term.
In every respect, the results of our second quarter were outstanding. Year-over-year, our revenue increased 46% and our normalized FFO is up 37% per share. We not only improved year-over-year, we also saw strong gains compared with the first quarter, which are indicative of the underlying sustainable trends we see emerging.
Compared with the first quarter, our revenue increased 18% and our normalized FFO per share is up 22%. Since our first acquisition, our portfolio has performed very well. Our investments are in some of the country’s strongest hospitals with some of the country’s strongest operators. Our EBITDAR coverages have consistently been some of the highest in the REIT industry.
Hospitals are the linchpin of the healthcare delivery system. Regardless of what direction healthcare reform takes, hospital will continue to be a vital part of that system. It is our unique and deep understanding of hospital operations and the industry that has allowed us to achieve the results I just outlined. This core knowledge is a differentiating characteristic that forms the foundation of our past and future successes. We believe this knowledge will allow us to continue to achieve strong operating results as we continue to grow our portfolio.Last quarter, we told you that we expected to make at least $300 million in acquisitions through the end of this year. To-date, we achieved about $130 million of that and still believe that we will achieve at least an additional $200 million through the end of this year.Turning to our property results, the mature operations in our portfolio, and just to remind you that means the property has been in our portfolio operationally for at least 12 months, continued to show an overall coverage of more than five times. The only real decline in our portfolio experience came from some of our acute care hospitals in the California market. This was due primarily to some reimbursement compressions in California. However, offsetting this is the California Hospital provider fee program signed into law in September 2011 that is expected to be a net benefit to our California hospitals. Our acute care portfolio continues to have a coverage ratio of more than 6.5 times. Our LTACHs are at more than two times and our inpatient rehabilitation facilities are at about 3.5 times.Read the rest of this transcript for free on seekingalpha.com
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