Medical Properties Trust has completed the sale of Idaho Falls Community Hospital and Mountain View Hospital real estate to affiliates of Intermountain Health for $413 million, a transaction that delivered $371 million to the company after $42 million was distributed to minority real estate owners. Management expects to use most of the proceeds to reduce debt, and the company described the proceeds as approximately $130 million above gross book value. Including the Infracore initial public offering and the sale of interests in five Utah hospitals, Medical Properties Trust reported approximately $680 million of third-quarter cash proceeds, a total that includes the Idaho transaction. The properties were sold at a 6.9% capitalization rate, which implies roughly $28.5 million of annual property income at the transaction level, though the company did not disclose rental income attributable to itself. In August, Medical Properties Trust disclosed an agreement for $2.4 billion of secured notes carrying a 9.25% coupon and maturing in 2032, a borrowing cost that illustrates the appeal of reducing financing requirements, although the sale announcement did not identify which obligations would be repaid.
Medical Properties Trust, Inc.
INFRACORE SAIntermountain Health affiliates completed a $413 million purchase of two hospital properties, expanding its real estate holdings.
