third quarter 2026
Filed Oct 29, 2026MPT reported third-quarter net income of $202 million ($0.34 per share) and Normalized Funds from Operations of $64 million ($0.11 per share), while completing approximately $680 million of asset sales and a private offering of approximately $2.4 billion of secured notes.
GAAP results swung to net income on real-estate sale gains and a debt-refinancing benefit, but NFFO declined to $64 million from $77 million and HSA's missed September rent reduced quarterly NFFO by two cents per share.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $250.1M | – | – |
| Rent billed, three months ended September 30, 2026GAAP | $195.3M | – | – |
| Straight-line rent, three months ended September 30, 2026GAAP | $35.70M | – | – |
| Income from financing leases, three months ended September 30, 2026GAAP | $10.10M | – | – |
| Interest and other income, three months ended September 30, 2026GAAP | $9.04M | – | – |
| Total expenses, three months ended September 30, 2026GAAP | $263.9M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $153.1M | – | – |
| Real estate depreciation and amortization, three months ended September 30, 2026GAAP | $70.34M | – | – |
| Property-related expense, three months ended September 30, 2026GAAP | $11.40M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $29.04M | – | – |
| Gain (loss) on sale of real estate, three months ended September 30, 2026GAAP | $157.8M | – | – |
| Real estate and other impairment charges, net, three months ended September 30, 2026GAAP | ($23,870) (Amounts in thousands) | – | – |
| Earnings from equity interests, three months ended September 30, 2026GAAP | $6.99M | – | – |
| Debt refinancing and unutilized financing benefit (costs), three months ended September 30, 2026GAAP | $69.52M | – | – |
| Other (including fair value adjustments on securities), three months ended September 30, 2026GAAP | $15.42M | – | – |
| Net income, three months ended September 30, 2026GAAP | $202.1M | – | – |
| Net income attributable to MPT common stockholders, three months ended September 30, 2026GAAP | $201.6M | – | – |
| Net income attributable to MPT common stockholders per common share, basic and diluted, three months ended September 30, 2026GAAP | $0.34 | – | – |
| Funds from operations, three months ended September 30, 2026non-GAAP | $143.4M | – | – |
| Funds from operations per diluted share, three months ended September 30, 2026non-GAAP | $0.24 | – | – |
| Normalized funds from operations, three months ended September 30, 2026non-GAAP | $63.82M | – | – |
| Normalized funds from operations per diluted share, three months ended September 30, 2026non-GAAP | $0.11 | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $761.5M | – | – |
| Rent billed, nine months ended September 30, 2026GAAP | $596.2M | – | – |
| Straight-line rent, nine months ended September 30, 2026GAAP | $103.2M | – | – |
| Income from financing leases, nine months ended September 30, 2026GAAP | $30.24M | – | – |
| Interest and other income, nine months ended September 30, 2026GAAP | $31.82M | – | – |
| Total expenses, nine months ended September 30, 2026GAAP | $759.7M | – | – |
| Gain (loss) on sale of real estate, nine months ended September 30, 2026GAAP | $163.4M | – | – |
| Net income (loss), nine months ended September 30, 2026GAAP | $232.9M | – | – |
| Net income (loss) attributable to MPT common stockholders per common share, basic and diluted, nine months ended September 30, 2026GAAP | $0.39 | – | – |
| Normalized funds from operations, nine months ended September 30, 2026non-GAAP | $238.3M | – | – |
| Normalized funds from operations per diluted share, nine months ended September 30, 2026non-GAAP | $0.40 | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2027 outlook
- NotePortfolio cash rents in excess of $1.0 billion in 2027, even after reduction of the rental income associated with assets sold in the third quarter.
Capital returns
- Paid a regular quarterly dividend of $0.09 per share in October 2026.
- Dividends declared per common share were $0.09 for the three months ended September 30, 2026, compared to $0.08 for the three months ended September 30, 2025.
- Dividends declared per common share were $0.27 for the nine months ended September 30, 2026, compared to $0.24 for the nine months ended September 30, 2025.
What drove it
- The Company sold its remaining interest in five hospitals in Utah for approximately $174 million.
- The Company sold its interest in the real estate of two hospitals in Idaho to affiliates of Intermountain Health for approximately $371 million.
- The private offering of approximately $2.4 billion of secured notes generated a $70 million gain in the quarter through repayment of existing debt.
- Rent billed was $195,305 (Amounts in thousands) in the third quarter, compared with $181,001 (Amounts in thousands) in the year-earlier period.
- General and administrative expense was $29,036 (Amounts in thousands), compared with $37,734 (Amounts in thousands) in the year-earlier period.
Concerns
- HSA did not pay September rent because of continued revenue cycle management challenges, reducing quarterly NFFO by two cents per share.
- MPT provided HSA additional working capital support during the quarter.
- Interest expense was $153,091 (Amounts in thousands) in the third quarter, compared with $132,395 (Amounts in thousands) in the year-earlier period.
- Earnings from equity interests were $6,988 (Amounts in thousands), compared with $34,403 (Amounts in thousands) in the year-earlier period.
- NFFO was $63,816 (Amounts in thousands), compared with $77,213 (Amounts in thousands) in the year-earlier period.
What to watch
- HSA's billings and collections after its engagement of Ovation Healthcare to oversee operations across the portfolio.
- Whether portfolio cash rents exceed $1.0 billion in 2027, including the Company's conservative assumptions for cash-basis tenants and HSA.
- Further debt repayment and balance-sheet improvement using the approximately $680 million of third-quarter asset-sale proceeds.
- The timing and execution of the Company's objective to further reduce debt and pursue selective growth opportunities.
Balance sheet and cash flow
- Cash and cash equivalents were $599,282 (Amounts in thousands) as of September 30, 2026, compared with $540,859 (Amounts in thousands) as of December 31, 2025.
- Debt, net was $9,260,257 (Amounts in thousands) as of September 30, 2026, compared with $9,697,835 (Amounts in thousands) as of December 31, 2025.
- Total Assets were $14,393,696 (Amounts in thousands) as of September 30, 2026, compared with $15,001,775 (Amounts in thousands) as of December 31, 2025.
- Total Liabilities were $9,771,270 (Amounts in thousands) as of September 30, 2026, compared with $10,394,526 (Amounts in thousands) as of December 31, 2025.
- Completed a private offering of approximately $2.4 billion of secured notes, with proceeds used to repay existing debt, including the 2026 notes and approximately 50% of the 2027 notes.
- Completed sales of certain assets resulting in approximately $680 million in cash proceeds in the third quarter, representing an aggregate $158 million gain.
Analysis
Third-quarter GAAP earnings improved materially from the year-earlier loss. Net income was $202,077 (Amounts in thousands), or $0.34 per common share, versus a loss of $77,450 (Amounts in thousands), or ($0.13) per common share. The result was driven by $157,766 (Amounts in thousands) of gain on sale of real estate and a $69,524 (Amounts in thousands) debt refinancing and unutilized financing benefit, compared with a $9,115 (Amounts in thousands) loss on sale and $14 (Amounts in thousands) of refinancing costs in the prior-year period.
Underlying supplemental earnings moved in the opposite direction. NFFO was $63,816 (Amounts in thousands), or $0.11 per diluted share, down from $77,213 (Amounts in thousands), or $0.13 per diluted share. Management stated that HSA's unpaid September rent reduced quarterly NFFO by two cents per share. Rent billed was $195,305 (Amounts in thousands), above $181,001 (Amounts in thousands) a year earlier, but straight-line rent was $35,699 (Amounts in thousands), below $36,405 (Amounts in thousands), while interest expense increased to $153,091 (Amounts in thousands) from $132,395 (Amounts in thousands).
Capital recycling and debt management dominated the quarter. MPT completed approximately $680 million of asset sales for an aggregate $158 million gain, including approximately $174 million from five Utah hospitals and approximately $371 million from two Idaho hospitals. It also completed a private offering of approximately $2.4 billion of secured notes to repay existing debt, including the 2026 notes and approximately 50% of the 2027 notes. Cash and cash equivalents were $599,282 (Amounts in thousands) and debt, net was $9,260,257 (Amounts in thousands) at September 30, 2026, versus $540,859 (Amounts in thousands) and $9,697,835 (Amounts in thousands), respectively, at December 31, 2025.
Portfolio scale at quarter end was 365 properties and approximately 37,000 licensed beds leased to or mortgaged by 52 hospital operating companies. MPT reported total assets of approximately $14.4 billion, including $8.3 billion of general acute facilities, $2.4 billion of behavioral health facilities and $1.6 billion of post-acute facilities. The forward outlook is limited to an expectation for portfolio cash rents in excess of $1.0 billion in 2027, after the third-quarter asset sales, and includes conservative assumptions for cash-basis tenants including HSA. The principal operating focus is HSA's collections performance and whether asset-sale proceeds continue to support debt reduction.
Management, verbatim
Our results this quarter demonstrate the decisive steps we have taken to strengthen our balance sheet and create greater flexibility to further reduce debt and pursue selective growth opportunities. As healthcare providers around the world seek new solutions to capital challenges, our business model is more important than ever and we are well positioned to create long-term value for our shareholders.
Edward K. Aldag, Jr., Chairman, President and Chief Executive Officer
We are closely monitoring operations at HSA as they navigate continued revenue cycle management challenges that precluded payment of September rent, reducing our NFFO by two cents during the quarter. HSA recently engaged a leading management services provider, Ovation Healthcare, to oversee operations across the portfolio and improve billings and collections.
Edward K. Aldag, Jr., Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Capital expenditures were not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Quarterly sequential comparisons were not reported.
- Segment revenue disclosures were not reported.
- Revenue, gross-margin, operating-expense and tax-rate guidance were not reported.
- Prior outlook was not provided, so no comparison of actual results with prior guidance is available.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.