A venture between an MPT affiliate and existing management of Ernest will acquire Ernest Health, Inc. for approximately $100 million, including approximately $96.5 million in MPT financing. MPT will have rights to a significant percentage of the profits and distributions of Ernest.

The Company intends to fund the acquisition with a combination of borrowings under MPT’s revolving credit facility, borrowings under a new term loan facility, as described below, net proceeds from other debt or equity capital market issuances, or a combination of the foregoing.

RBC Capital Markets, LLC acted as MPT’s exclusive financial advisor for this transaction.


Upon completion of this transaction, Medical Properties Trust’s portfolio metrics will approximate the following:
  • Largest operator will comprise 20% of pro forma total assets;
  • Assets in California will comprise 22% of pro forma total assets;
  • MPT’s largest property will make up 4% of pro forma total assets;
  • General acute care hospitals will comprise approximately 51% of total invested assets, LTACHs 27%, and IRFs 21%

At December 31, 2011, the Company had total real estate investments of approximately $1.5 billion comprised of 62 healthcare properties in 21 states leased to 20 hospital operating companies. 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. Such amounts do not include any amount for income from operating company equity.

This estimate will change if, among other things, the Ernest transactions are not completed, the Company acquires additional assets, market interest rates change, debt is refinanced, new shares of common stock are issued, additional debt is incurred, assets are sold, the River Oaks property is leased, other operating expenses vary or existing leases do not perform in accordance with their terms. In addition, these estimates do not include the effects, if any, of real estate operating costs, litigation costs, debt refinancing costs, acquisition costs, new interest rate hedging activities, write-offs of straight-line rent or other non-recurring or unplanned transactions; nor do they include earnings, if any, from the Company’s profits interests or other investments in lessees.

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