BUSINESS MODEL DESIGNED FOR INFLATION slide image

BUSINESS MODEL DESIGNED FOR INFLATION

WHAT IS THE NARRATIVE SURROUNDING THE STOCK, AND WHAT HAS MPT BEEN DOING? MPT REMAINS FOCUSED ON EXECUTING ITS PROVEN STRATEGY DESPITE REPEATED FALSE AND MISLEADING CLAIMS PERPETUATED PRIMARILY BY SHORT-SELLERS ➤ Myopic attention from critics on tenant matters that do not affect rent collections • Esoteric accounting principles • Hiring of financial advisors • Timing of refinancings • Point-in-time coverage calculations • Staffing levels • Industry operating margins False Claims X MPT consciously overpays for real estate X MPT engages in "round-tripping" of rents X Tenants are in a weak financial position and unable to continue paying rents Facts Valuations repeatedly validated by transactions with sophisticated investors ✓ Achieved unprecedented valuation (47% gain on sale of real estate) on sale of eight hospitals to partnership with Macquarie ✓ Completed sale of Australia portfolio at 5.7% cap rate during a period of global capital markets disruption Executed and/or announced nearly $500 mm in profitable asset sales to Prime It is simply not possible to "round-trip" funds sent directly to third parties ✓ Virtually all of $27.5 mm investment in new hospital near Houston, TX paid directly to the former owner/developer of the real estate along with contractors, architects, suppliers and other third parties When MPT acquired 11 hospitals as part of the IASIS/Steward merger, it paid $1.4 bn directly to an IASIS bank account ✓ Read more in MPT's full defamation lawsuit Recent actions demonstrate MPT's careful lease structuring and effective portfolio management Outstanding financial outcome and validation of underwriting and master lease structuring for Pipeline Los Angeles hospitals Expect resolution of Prospect exposure, with reasonable likelihood all 1Q23 assets are recovered Long-standing diversification goals achieved, including Steward concentration With improving macroeconomic trends for hospitals, seeing strong and improving tenant rent coverage as well as rapid tenant balance sheet improvement, especially for Steward MPT 8
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