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Medical Properties Trust Announces Acquisition in Portland, Oregon

Posted on: Friday, 25 August 2006, 15:01 CDT

Medical Properties Trust, Inc. (NYSE: MPW) announced today that it has completed a $17.8 million acquisition of the real estate assets of an acute care hospital in Portland, Oregon. The hospital building will be renovated and converted into a long-term acute care hospital and is scheduled for opening in the second quarter of 2007.

The Portland facility will be operated by Vibra Healthcare L.L.C. Subsequent to the acquisition announced today, along with approximately $4.0 million in expected renovation costs to be funded by MPT, Vibra will represent approximately 35% of MPT's assets and 35% of annualized pro forma revenue.

"This is the third investment we have made in the past four weeks, bringing our total investments made in 2006 to approximately $108 million," said Edward K. Aldag, Jr., Chairman, President and CEO. "We are delighted to enter the Portland market with Vibra, which is a new market for both companies. This investment will not only add to MPT's funds from operations, but should also further improve Vibra's position as one of the premier post-acute hospital operators in the nation."

The initial term of the lease is 15 years, with options to extend for three terms of five years each. Base rent, at an initial GAAP rate exceeding 12.5%, will increase each year during the lease term at the greater of a base rate or an inflation factor. The Portland lease is cross-defaulted with Vibra's other leases and loans.

About Medical Properties Trust, Inc.

Medical Properties Trust, Inc. is a Birmingham, Alabama based self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. These facilities include inpatient rehabilitation hospitals, long-term acute care hospitals, regional acute care hospitals, ambulatory surgery centers and other single-discipline healthcare facilities, such as heart hospitals, orthopedic hospitals and cancer centers.

The statements in this press release that are forward looking are based on current expectations and actual results or future events may differ materially. Words such as "expects,""believes,""anticipates,""intends,""will,""should" and variations of such words an similar expressions are intended to identify such forward-looking statements, which include statements including, but not limited to, future operations of the tenants under the Vibra leases, rates of inflation, completion of planned renovations, and the relative amount of MPT's business represented by Vibra. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results of the Company or future events to differ materially from those expressed in or underlying such forward-looking statements. For further discussion of the facts that could affect outcomes, please refer to the "Risk Factors" section of the Company's Form 10-K for the year ended December 31, 2005. Except as otherwise required by the federal securities laws, the Company undertakes no obligation to update the information in this press release.

Source: Business Wire

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