BUSINESS MODEL DESIGNED FOR INFLATION slide image

BUSINESS MODEL DESIGNED FOR INFLATION

WHAT HAS NOT CHANGED... MPT INVESTS IN REAL HOSPITAL ASSETS ➤ Essential to meet demand for highest acuity healthcare needs ➤ Agnostic as to operator ➤ As with any other landlord, if tenant cannot pay rent, a new tenant is found ➤ Day to day tenant operations do not impact collection of rent ➤ Rent expense is a small portion of tenant's net revenue ✰✰✰ Physical Quality Demographics and Market Well-maintained ➤ Modern technology ➤ High replacement cost ➤ Patient demand growth ➤ Sustainable reimbursement sources ➤ Desirable location ➤ Growth constraints on existing competitors Competition ➤ Scarcity of developable real estate ➤ High start-up costs for and/or regulatory limits on new entrants ➤ Facility-level operations generate strong rent coverage Financial ➤ High-quality and diverse reimbursement sources ➤ Diverse referral sources Infrastructure Characteristics, Specialized Underwriting and Master Lease and Collateral Agreements •Lease termination extremely rare • Facilitates efficient tenant replacement • Real assets continue to demand tenancy and achieve growing cash rent MPT 00 6
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