BUSINESS MODEL DESIGNED FOR INFLATION
THE BUSINESS MODEL IS PERFORMING
7.0%
5.0%
MPT DESIGNED ITS STRATEGY TO ACCOMMODATE EXPECTED PERIODS OF HIGH INFLATION
Inflation and Interest Rates¹
3.0%
1.0%
-1.0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
YoY Growth in December U.S. CPI
-Year-End U.S. 10-Year Treasury Yield
GLOBAL PANDEMIC AND RELATED DISRUPTION TO LABOR MARKETS WAS
NOT ANTICIPATED, YET:
TTM EBITDARM Coverages Stable Since 2Q21
and Highest Among Health Care REIT NNN
Portfolios²
250
3.5x
2.9x
3.0x
2.5x
2.0x
1.5x
1.0x
1Q18
2Q18
3Q18
4Q18
4Q19
1Q20
2Q20
3Q20
2.7x
200
1.4x
Preliminary TTM Q1 2023 result for
domestic general acute hospitals
2Q22
3Q22
4Q22
1Q23E
TTM EBITDARM Coverage (domestic general acute, excluding
CARES Act grants)
1 Federal Reserve Bank of St. Louis
2 Excludes Prospect and sold Prime hospitals for all periods
100
150
Similarly, Hospital Reimbursement is Designed to
Adjust to Inflation Trends
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
8T07
TOZ
+3.0% CAGR
+2.5% CAGR
Inpatient Hospital Market Basket - Final Rule (Centers for Medicare
and Medicaid Services; indexed)
U.S. CPI (Bureau of Labor Statistics; indexed)
2019
2020
2021
2022
2023
MPT
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