BUSINESS MODEL DESIGNED FOR INFLATION
BUSINESS MODEL DESIGNED FOR INFLATION
CPI-BASED ESCALATORS & STAGGERED DEBT MATURITIES
Scenario-Based Exercise: Projected Annual Cash Income in Excess of
Interest Expense and Dividends 2024-2033E (thousands) 1,2,3,4
$350,000
$300,000
$250,000
$200,000
PRIMARY ASSUMPTIONS
Zero recovery of Prospect-related collateral outside of expected $355 mm cash CT sale proceeds
➤ All consolidated refinancing (including lines of credit and term loans) executed with long-term,
fixed rate debt
No incremental acquisitions, and no incremental spending nor future revenue contribution
related to ongoing capital projects with scheduled rent commencement post-Q2 2023
$150,000
$100,000
$50,000
$-
2024E
2025E
2026E
2027E
2028E
2029E
2030E
2031E
2032E
2033E
Low Inflation
■Moderate Inflation
High Inflation
Scenario
1: Low Inflation
2: Moderate Inflation
3: High Inflation
10-Year Cash Rent CAGR
Fixed, Long-Term Refinancing
Rate
2.0%
6.0%
3.5%
7.5%
5.0%
9.0%
Cumulative Cash Flow in Excess
of Interest and Dividends
~$570,000
~$755,000
~$1,050,000
1 Includes MPT proportionate interest in unconsolidated revenue and interest expense; assumes +2% annual increase in interest income to account for escalators on mortgage investments, current quarterly
dividend of $0.29 per share, current share count, static cash expense run-rate approximating $160 mm annually to account for cash G&A and normalized income tax expenses
2 Assumes proceeds from expected Australia sale, Steward loan repayment, sale of Prospect hospitals in CT (cash only), Prime repurchase option and incremental revolver draws, net of amounts reinvested in
acquisitions and developments with rent commencements in Q2 2023, are used to repay all 2023 and 2024 debt maturities
3 Includes assumption that cash rents related to Prospect California properties resume at 50% beginning in September 2023 and re-stabilize at full cash yield by the end of 1Q24; further assumes that MPT
collects cash interest on $150 mm PA mortgage for duration of analysis
4 Assumes (secured) unconsolidated debt is refinanced at 4.5%, 6% and 7.5% in low, moderate and high-inflation scenarios, respectively
MPT
11View entire presentation