Medical Properties Trust to sell Healthscope portfolio

Medical Properties Trust has entered into a definitive agreement to sell its Australian real estate investments operated by Healthscope to affiliates of HMC Capital, an Australian alternative asset manager focused on real estate strategies, including HealthCo Healthcare & Wellness REIT. The transaction is expected to be completed in the second half of 2023, subject to certain regulatory approvals. Total consideration for the company’s Healthscope portfolio is based in part on a lease capitalization rate approximating 5.7%, resulting in anticipated cash proceeds sufficient to fully prepay the AUD$1.2B term loan used to fund the 2019 acquisition of the 11 hospitals leased to Healthscope. At year-end 2022 exchange rates, the term loan was reflected in MPT’s financial statements at a U.S. dollar equivalent of approximately $818M; at the same exchange rate, 2023 annualized GAAP rent would be approximately $54M.