Medical Properties Trust announces agreement for CommonSpirit Health to acquire Steward’s Utah operations

Medical Properties Trust (MPT) has agreed to lease its entire Utah hospital portfolio to Catholic Health Initiatives Colorado (CHIC), a wholly owned subsidiary of CommonSpirit Health, subsequent to CHIC’s pending acquisition of the Utah hospital business currently operated by Steward Health Care System. Centura Health (“Centura”) will manage the facilities for CHIC.

The expected transaction will further MPT’s long-term efforts to improve portfolio diversification by property type, geography and, in this case, operator. The Company’s investment in its Utah real estate represents approximately 6 percent of its total gross assets, and Steward’s concentration will decline by this amount. Accordingly, CommonSpirit, recognized as one of the country’s largest and most respected not-for-profit healthcare providers, will become one of MPT’s largest tenants. Cash rental payments during the 15-year initial lease term are to begin at roughly 7.8 percent of MPT’s gross i