Medical Properties Trust, Inc. bridges the gap between the growing demand for high-quality healthcare and the ability to deliver it cost-effectively. Specializing in acute care, community and rehabilitation hospitals, this healthcare real estate investment trust (REIT) provides operators access to capital for facility improvements, technology upgrades, staff additions and new construction through long-term net leases of real estate assets. By reinvesting non-earning assets into operations, MPT clients are able to participate in the growth of the largest sector of the U.S. economy.
Medical Properties Trust, Inc. has completed the acquisition of 11 rehabilitation hospitals operated across Germany by RHM Klinik-und Alterheim-betriebe GmbH & Co. ("RHM") for approximately $248 million (based on a EUR/USD exchange rate of 1.35).
The transaction - MPT's first outside the United States - closed at the end of November, with MPT taking possession of the real estate assets on December 1st. According to MPT Chairman and CEO Edward K. Aldag, Jr., "This acquisition is fully aligned with our long-term strategy to diversity our portfolio while remaining focused on hospital investments."
"We believe that increasing our exposure to positive global trends adds a dynamic new layer of diversity to our portfolio and significantly increases our acquisition pipeline opportunities," added Mr. Aldag, who noted that Germany has a strong, stable economy, low unemployment rates and a comprehensive health insurance program that covers all of its citizens.
The RHM portfolio that MPT acquired consists of nearly 1,800 rehabilitation beds with average occupancy rates significantly above the average rates
for German rehabilitation clinics. Based in Deidesheim, Germany, RHM is owned by Waterland Private Equity Investments, a leading European private equity
firm, which will maintain its operational ownership. RHM has what
Mr. Aldag describes as "a track record of operational excellence."
Medical Properties Trust, Inc. announced on September 30th that it had completed the acquisition of the real estate assets of three acute care hospitals operated by IASIS Healthcare, LLC for $283.3 million.
The transaction significantly expands MPT's relationship with IASIS, one of the largest for-profit acute care operators in the U.S., according to Modern Healthcare, with total annual net revenue of approximately $2.4 billion.
The real estate assets acquired include Mountain Vista Medical Center in Mesa, Arizona, with 178 beds; Glenwood Regional Medical Center in West Monroe, Louisiana, with 268 beds; and The Medical Center of Southeast Texas, in Port Arthur, with 224 beds.
"The access to capital and low interest rates available currently to companies like ours is somewhat unprecedented and has created an exceptionally attractive financing opportunity," said IASIS Healthcare President and Chief Executive Officer Carl Whitmer when the acquisition by MPT was announced on September 19th.
"This will allow us to transition capital currently locked up in our real estate to cash on hand, which we can put toward our mission of improving the quality of life for the communities we serve."
IASIS owns and operates 19 acute care hospitals, one behavioral health hospital, several outpatient service facilities and more than 160 physician clinics, as well as Medicaid and Medicare managed health plans in Arizona and Utah serving more than 176,000 members. The company's relationship with Medical Properties Trust goes back to 2008.
MPT made its first investment in IASIS in 2008 with the acquisition of the real estate assets of Pioneer Valley Hospital in West Valley City, Utah. Three more IASIS hospitals became part of MPT's portfolio in September.