Medical Properties Trust Raises $500M to Strengthen Balance Sheet and Boost Healthcare Property Acquisitions

Medical Properties Trust (MPW) raised $500M through an at-the-market equity program to strengthen its balance sheet and acquire healthcare properties. The REIT specializes in acquiring and developing net-leased hospital and healthcare properties, leasing or loaning them to operators to unlock real estate value and reinvest in facility improvements. Despite challenges such as tenant bankruptcies, MPW has focused on stabilizing operations and plans to continue its acquisition strategy.

Medical Properties Trust (MPW), a real estate investment trust (REIT) specializing in acquiring and developing net-leased hospital and healthcare properties, has successfully raised $500 million through an at-the-market equity program. This funding round aims to strengthen MPW's balance sheet and facilitate the acquisition of additional healthcare properties.

The at-the-market equity program involves the sale of up to $500 million in common stock through a continuous offering program with several major financial institutions, including Truist Securities, Barclays Capital Inc., BNP Paribas Securities Corp., BofA Securities, Inc., and others [1]. The equity distribution agreement outlines that MPW's common stock, listed on the New York Stock Exchange under the symbol "MPW," may be offered and sold through these agents or directly to them as principals.

The proceeds from this offering will be used to bolster MPW's financial position and support its acquisition strategy. Despite facing challenges such as tenant bankruptcies, MPW has focused on stabilizing operations and plans to continue its strategy of leasing or loaning properties to operators, unlocking real estate value, and reinvesting in facility improvements.

The equity distribution agreement stipulates that the agents will receive up to 2% of the gross sales price of all shares sold through them as agents. Additionally, forward sale transactions may be entered into with forward purchasers, who will attempt to hedge their exposure by borrowing and selling shares through forward sellers. MPW expects to fully physically settle each forward sale transaction, receiving net cash proceeds equal to the number of shares multiplied by the relevant forward sale price per share [1].

MPW's charter restricts ownership by any person to 9.8% of the lesser of the number or value of shares of its outstanding common stock, with certain exceptions. Investing in MPW's common stock involves risks, including those related to tenant bankruptcies, changes in healthcare regulations, and market fluctuations. Investors are advised to review the "Risk Factors" section in the prospectus supplement for a comprehensive understanding of these risks [1].

References:
[1] https://www.stocktitan.net/sec-filings/MPW/424b5-medical-properties-trust-inc-prospectus-supplement-debt-securit-01be8e409d61.html