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Medical Properties Trust Acquires Three Properties in Orange County, California

Posted on: Wednesday, 8 November 2006, 18:01 CST

Medical Properties Trust, Inc. (NYSE: MPW) announced today that it has acquired the real estate assets of three community hospitals in Orange County, California for an aggregate price of $60 million, including $10 million for expected future renovations. With the acquisitions announced today, MPT has completed approximately $183 million of acquisitions in 2006.

Edward K. Aldag, Jr., MPT's Chairman, President and CEO, said, "The MPT management team continues to find investment opportunities that generate 10%-plus real estate returns for our shareholders. Since we started acquiring hospital real estate assets less than three years ago, we have made investments totaling more than $700 million at average initial cash rates of approximately 10.25%." Aldag also described MPT's outlook for continued growth. "We expect to make additional investments before year-end of at least $30 million, and we are confident in acquiring another $200 to $300 million in hospital assets during 2007."

The Company used proceeds from a private issuance of exchangeable notes to fund these acquisitions. Aldag reiterated MPT's success in implementing its business plan of using debt capital at attractive rates to fund a significant portion of its investments. "As we grow and diversify our assets, we expect our cost of debt and other capital to continue to decline relative to our returns, which will create even more attractive investment opportunities."

The three Orange County hospital properties were acquired from and simultaneously leased to wholly owned subsidiaries of Prime Healthcare Systems under long-term net leases. Prime is MPT's second largest tenant that now operates 7 of the Company's 25 properties.

The three hospitals are:

La Palma Intercommunity Hospital, a 141-bed, 93,000 square foot facility located in La Palma, California;

West Anaheim Medical Center, a 219-bed, 180,000 square foot facility in Anaheim, California; and

Huntington Beach Hospital, a 131-bed, 110,000 square foot facility in Huntington Beach, California.

The initial term for the three leases is 15 years, with options to extend for three terms of five years each. Base rent will increase each year during the lease term at the greater of a base rate or an inflation factor. The leases of the three properties will be cross-defaulted and guaranteed by Prime. The tenant may repurchase the real estate of West Anaheim and La Palma subsequent to the 10th anniversary of lease commencement and after the 7th anniversary for the Huntington Beach property.

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 La Palma, West Anaheim and Huntington Beach leases and other leases to affiliates of Prime Healthcare Services, rates of inflation, any possible increase in the value of the loan collateral and any future acquisitions of healthcare real estate. 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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