Medical Properties Trust (MPT) has entered into definitive agreements to acquire for approximately $900 million five general acute-care hospitals from Tenet Healthcare in conjunction with Steward Health Care System’s acquisition of the operations of the facilities.
The hospitals will be leased pursuant to MPT’s master lease agreement with Steward, which is expected to exercise its options to extend the lease term to expire in 2041, leaving a five-year extension option remaining. The company expects to initially fund the total cash consideration using cash on hand, as well as funds from the closing of binding property sales, proceeds from loan repayments, and funds from other anticipated capital recycling transactions with an aggregate value projected to exceed $1 billion. Collectively, the pricing of these transactions is expected to provide an attractive cost of equity capital to fund the Florida sale-leaseback transaction and other announced investments, including MPTâ€