Medical Properties Trust, Inc. common stock

25 earnings conference call. All lines have been placed on mute to prevent any background noise during this 60-minute call. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Charles Lambert, Senior Vice President. Please go ahead.

Good morning. Welcome to the Medical Properties Trust conference call to discuss our third quarter 2025 financial results. With me today are Edward K. Aldeck, Jr., Chairman, President, and Chief Executive Officer of the company. Steven Hamner, Executive Vice President and Chief Financial Officer. Kevin Hanna, Senior Vice President, Controller, and Chief Accounting Officer. Rosa Williams, Senior Vice President of Operations and Secretary. and Jason Fry, Managing Director, Asset Management and Underwriting. Our press release was distributed this morning and furnished on Form 8K with the Securities and Exchange Commission. If you did not receive a copy, it is available on our website at medicalpropertystrust.com in the investor relations section. Additionally, we're hosting a live webcast of today's call, which you can access in that same section. During the course of this call, we will make projections and certain other statements that may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause our financial results and future events to differ materially from those expressed in or underlying such forward-looking statements. We refer you to the company's reports filed with the Securities and Exchange Commission for discussion of the factors that could cause the company's actual results or future events to differ materially from those expressed in this call. The information being provided today is as of this date only and except as required by the federal securities laws, the company does not undertake a duty to update any such information. In addition, during the course of the conference call, we will describe certain non-GAAP financial measures which should be considered in addition to, and not in lieu of, comparable GAAP financial measures. Please note that in our press release, Medical Properties Trust has reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg G requirements. You can also refer to our website at medicalpropertystrust.com of the most directly comparable financial measures and related reconciliations. I will now turn the call over to our Chief Executive Officer, Ed Aldag.

Thank you, Charles, and thanks to all of you for joining us this morning on our third quarter 2025 earnings call. Before you hear from the rest of the team, I'll spend a few minutes discussing recent strategic updates, including a few notable developments during the quarter in the prospect bankruptcy process. First, across all asset types, our tenants are delivering exceptional performance. General acute care operators reported a more than $200 million increase in EBITDARM year over year, with tenants such as LifePoint Health and Scion Health delivering double digit percentage revenue increases during the quarter. Post-acute operators reported a $50 million EBITDARM increase versus the same quarter last year. That includes Earnest Health up 17%, Vibra up 33%, and Median up 7%. Finally, in our behavioral health portfolio, EBITDARM increased $10 million year over year. Rosa will share more details on this performance trend across our portfolio shortly. In August, Knorr Healthcare Systems in California was named the successful bidder for Prospect 6 California facilities. We promptly agreed to a new lease agreement with NOR, the terms of which are broadly similar to those agreed to with the other operators in our transitional portfolio. All rent will be deferred for the first six months, ramping to 50% for an additional six months, and then reaching total stabilized annual rent of $45 million per year thereafter. More recently, we reached a settlement agreement with Yale New Haven and prospect whereby prospect will receive $45 million from Yale. This payment from Yale will be additive to the ultimate proceeds that prospect receives for these properties. Prospect has already entered into an agreement to sell two of its Connecticut facilities to another operator and is actively engaged in negotiation with buyers around the third hospital. Finally, our portfolio of new tenants continues to ramp monthly rent on schedule. With a few exceptions that are mentioned in our press release, we have collected all rent due from these operators through October, including 100% of rent from HSA. In August, we sold two facilities from this portfolio in Phoenix, Arizona to a tenant for approximately $50 million. pursuant to a purchase option in the lease. We continue to own approximately 15 acres of land in the area. We are increasingly confident in our ability to generate total annualized cash rent of more than $1 billion by year end 2026. Notably, this $1 billion target does not reflect any rent contributions from any of the California prospect properties. Reflecting this confidence as well as our strong belief that our share price remains significantly undervalued, our board of directors has authorized a new $150 million share repurchase program that we intend to deploy opportunistically. Furthermore, I want to call your attention to a comprehensive reaffirmation of our business model presentation posted to our website earlier this week. In this presentation, we directly addressed a range of false narratives that critics have been spreading about our business model. We believe it is important that shareholders, operators, journalists, and lawmakers all have a complete understanding of the truth around NPT. There remains a dynamic macro policy environment, making the permanent and flexible capital solutions that NPT offers more important now than ever. Rosa?