Medical Properties sells majority stake in five Utah hospitals

Medical Properties Trust

12/04/2024 22:59

April 12 (Reuters) - Medical Properties Trust  MPW.N 
said on Friday it would sell majority of its stake in five Utah
hospitals for $886 million, sending its shares up more than 10%
in extended trading.
    The real estate investment trust (REIT) said it had sold 75%
of its stake to a newly formed joint venture.
    Along with the sale, the joint venture placed new
non-recourse secured financing, providing $190 million of
additional cash to Medical Properties.
    Non-recourse loans are extended to properties and projects
that are pledged as collateral and borrowers are not held liable
in the case of defaults.
    The two transactions delivered about $1.1 billion of
immediate cash proceeds to the company, and they will be used to
reduce outstanding debt, including payment in full of its $300
million Australian term loan due 2024, the REIT said.
    "We are now confident that we will exceed our initial target
of $2 billion in liquidity transactions in 2024 based on the
valuations achieved on recent transactions and the terms we are
actively negotiating for additional transactions," CEO Edward
Aldag said in a statement.

 (Reporting by Christy Santhosh in Bengaluru; Editing by Maju
Samuel)
 ((Christy.Santhosh@thomsonreuters.com;))