Condensed Consolidating Financial Information

9 Months Ended

Sep. 30, 2011

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

16. Condensed Consolidating Financial Information

The following tables present the condensed consolidating financial information for (a) Medical Properties Trust, Inc. ("Parent" and a guarantor to our 2011 senior unsecured notes), (b) MPT Operating Partnership, L.P. and MPT Finance Corporation ("Subsidiary Issuer"), (c) on a combined basis, the guarantors of our 2011 unsecured senior notes ("Subsidiary Guarantors"), and (d) on a combined basis, the non-guarantor subsidiaries ("Non-Guarantor Subsidiaries"). Separate financial statements of the Subsidiary Guarantors are not presented because the guarantee by each 100% owned Subsidiary Guarantor is joint and several, and we believe separate financial statements and other disclosures regarding the Subsidiary Guarantors are not material to investors. Furthermore, there are no significant legal restrictions on the Parent's ability to obtain funds from its subsidiaries by dividend or loan.

The guarantees by the Subsidiary Guarantors may be released and discharged upon: (1) any sale, exchange or transfer of all of the capital stock of a Subsidiary Guarantor; (2) the merger or consolidation of a Subsidiary Guarantor with a Subsidiary Issuer or any other Subsidiary Guarantor; (3) the proper designation of any Subsidiary Guarantor by the Subsidiary Issuers as "unrestricted" for covenant purposes under the indenture governing the 2011 senior unsecured notes; (4) the legal defeasance or covenant defeasance or satisfaction and discharge of the indenture; (5) a liquidation or dissolution of a Subsidiary Guarantor permitted under the indenture governing the 2011 senior unsecured notes; or (6) the release or discharge of the Subsidiary Guarantor from its guarantee obligations under our revolving credit facility.

Condensed Consolidated Balance Sheet

September 30, 2011

(in thousands)

	Parent		Subsidiary Issuers		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Assets
Real estate assets
Land, buildings and improvements and intangible lease assets	$	—	$	86	$	1,087,256		$	170,946		$	—		$	1,258,288
Mortgage loans		—		—		165,000			—			—			165,000
Gross investment in real estate assets		—		86		1,252,256			170,946			—			1,423,288
Accumulated depreciation and amortization		—		—		(87,681	)		(13,091	)		—			(100,772	)
Net investment in real estate assets				86		1,164,575			157,855			—			1,322,516
Cash & cash equivalents		—		113,132		—			1,236			—			114,368
Interest and rent receivable		—		505		22,184			6,133			—			28,822
Straight-line rent receivable		—		—		25,158			9,445			—			34,603
Other loans		—		177		230			55,724			—			56,131
Net intercompany receivable (payable)		21,923		869,106		(856,530	)		(34,499	)		—			—
Investment in subsidiaries		838,099		462,310		43,020			—			(1,343,429	)		—
Other assets		—		21,794		1,199			16,256			—			39,249
Total Assets	$	860,022	$	1,467,110	$	399,836		$	212,150		$	(1,343,429	)	$	1,595,689
Liabilities and Equity
Liabilities
Debt, net	$	—	$	594,927	$	—		$	54,086		$	—		$	649,013
Accounts payable and accrued expenses		22,358		33,481		1,416			411			—			57,666
Deferred revenue		—		603		18,277			4,696			—			23,576
Lease deposits and other obligations to tenants		—		—		26,641			1,129			—			27,770
Total liabilities		22,358		629,011		46,334			60,322			—			758,025
Total Medical Properties Trust Inc. stockholder's equity		837,564		837,999		353,502			151,828			(1,343,329	)		837,564
Non-controlling interests		100		100		—			—			(100	)		100
Total equity		837,664		838,099		353,502			151,828			(1,343,429	)		837,664
Total Liabilities and Equity	$	860,022	$	1,467,110	$	399,836		$	212,150		$	(1,343,429	)	$	1,595,689

Condensed Consolidated Statements of Income

For the Three Months Ended September 30, 2011

(in thousands)

	Parent			Subsidiary Issuers			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Rent billed	$	—		$	—		$	26,608	$	4,461		$	(331	)	$	30,738
Straight-line rent		—			—			1,255		547			—			1,802
Interest and fee income		—			1,351			4,000		1,088			(1,188	)		5,251
Total revenues		—			1,351			31,863		6,096			(1,519	)		37,791
Expenses
Real estate depreciation and amortization		—			—			7,455		975			—			8,430
Impairment charge		—			—			—		—			—			—
Property-related		—			87			211		345			(331	)		312
General and administrative		18			6,348			—		(630	)		—			5,736
Acquisition expenses		—			513			17		—			—			530
Total operating expenses		18			6,948			7,683		690			(331	)		15,008
Operating income (expense)		(18	)		(5,597	)		24,180		5,406			(1,188	)		22,783
Other income (expense)
Interest income and other		—			44			84		(77	)		—			51
Debt refinancing costs		—			(10,425	)		—		—			—			(10,425	)
Interest expense		—			(11,735	)		230		(1,618	)		1,188			(11,935	)
Net other income (expense)		—			(22,116	)		314		(1,695	)		1,188			(22,309	)
Income (loss) from continuing operations		(18	)		(27,713	)		24,494		3,711			—			474
Income (loss) from discontinued operations		—			—			—		(6	)		—			(6	)
Equity in earnings of consolidated subsidiaries net of income taxes		486			28,199			1,112		—			(29,797	)		—
Net income (loss)		468			486			25,606		3,705			(29,797	)		468
Net income (loss) attributable to non-controlling interests		(43	)		(43	)		—		—			43			(43	)
Net income (loss) attributable to MPT common stockholders	$	425		$	443		$	25,606	$	3,705		$	(29,754	)	$	425

Condensed Consolidated Statements of Income

For the Nine Months Ended September 30, 2011

(in thousands)

	Parent			Subsidiary Issuers			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Rent billed	$	—		$	—		$	76,907	$	12,606		$	(994	)	$	88,519
Straight-line rent		—			—			3,891		1,715			—			5,606
Interest and fee income		—			4,118			12,677		3,105			(4,088	)		15,812
Total revenues		—			4,118			93,475		17,426			(5,082	)		109,937
Expenses
Real estate depreciation and amortization		—			—			21,914		2,764			—			24,678
Impairment charge		—			—			564		—			—			564
Property-related		—			87			513		1,023			(994	)		629
General and administrative		62			18,356			—		2,010			—			20,428
Acquisition expenses		—			2,717			469		—			—			3,186
Total operating expenses		62			21,160			23,460		5,797			(994	)		49,485
Operating income (expense)		(62	)		(17,042	)		70,015		11,629			(4,088	)		60,452
Other income (expense)
Interest income and other		—			42			84		(68	)		—			58
Debt refinancing costs		—			(14,109	)		—		(105	)		—			(14,214	)
Interest expense		—			(31,750	)		488		(5,288	)		4,088			(32,462	)
Net other income (expense)		—			(45,817	)		572		(5,461	)		4,088			(46,618	)
Income (loss) from continuing operations		(62	)		(62,859	)		70,587		6,168			—			13,834
Income (loss) from discontinued operations		—			—			98		43			—			141
Equity in earnings of consolidated subsidiaries net of income taxes		14,037			76,896			3,457		—			(94,390	)		—
Net income (loss)		13,975			14,037			74,142		6,211			(94,390	)		13,975
Net income (loss) attributable to non-controlling interests		(131	)		(131	)		—		—			131			(131	)
Net income (loss) attributable to MPT common stockholders	$	13,844		$	13,906		$	74,142	$	6,211		$	(94,259	)	$	13,844

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2011

(in thousands)

	Parent			Subsidiary Issuers			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(124	)	$	(26,727	)	$	86,972		$	7,007		$	—		$	67,128
Investing Activities
Real estate acquired		—			—			(168,600	)		(27,911	)		—			(196,511	)
Principal received on loans receivable		—			—			—			2,898			—			2,898
Proceeds from sales of real estate		—			—			—			—			—			—
Investments in and advances to subsidiaries		67,126			(89,763	)		89,135			504			(67,002	)		—
Investments in loans receivable and other investments		—			(205	)		(3,314	)		(13,281	)		—			(16,800	)
Construction in progress and other		—			—			(12,297	)		—			—			(12,297	)
Net cash provided by (used in) investing activities		67,126			(89,968	)		(95,076	)		(37,790	)		(67,002	)		(222,710	)
Financing Activities
Revolving credit facilities, net		—			—			—			39,600			—			39,600
Additions to term debt		—			450,000			—			—			—			450,000
Payments of term debt		—			(229,271	)		—			(8,539	)		—			(237,810	)
Distributions paid		(67,002	)		(67,194	)		—			—			67,002			(67,194	)
Sale of common stock, net		—			—			—			—			—			—
Lease deposits and other obligations to tenants		—			—			8,104			(491	)		—			7,613
Debt issuance costs paid and other financing activities		—			(20,530	)		—			(137	)		—			(20,667	)
Net cash provided by financing activities		(67,002	)		133,005			8,104			30,433			67,002			171,542
Increase (decrease) in cash and cash equivalents for period		—			16,310			—			(350	)		—			15,960
Cash and cash equivalents at beginning of period		—			96,822			—			1,586			—			98,408
Cash and cash equivalents at end of period	$	—		$	113,132		$	—		$	1,236		$	—		$	114,368

Condensed Consolidated Balance Sheet

December 31, 2010

(in thousands)

	Parent		Subsidiary Issuers		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Assets
Real estate assets
Land, buildings and improvements and intangible lease assets	$	—	$	297	$	903,630		$	128,442		$	—		$	1,032,369
Mortgage loans		—		—		165,000			—			—			165,000
Gross investment in real estate assets		—		297		1,068,630			128,442			—			1,197,369
Accumulated depreciation and amortization		—		—		(65,767	)		(10,327	)		—			(76,094	)
Net investment in real estate assets		—		297		1,002,863			118,115			—			1,121,275
Cash & cash equivalents		—		96,822		—			1,586			—			98,408
Interest and rent receivable		—		157		20,727			5,292			—			26,176
Straight-line rent receivable		—		—		21,180			7,732			—			28,912
Other loans		—		178		—			50,807			—			50,985
Net intercompany receivable (payable)		21,944		774,771		(767,395	)		(29,320	)		—			—
Investment in subsidiaries		899,949		390,232		42,970			—			(1,333,151	)		—
Other assets		—		10,289		1,215			11,554			—			23,058
Total Assets	$	921,893	$	1,272,746	$	321,560		$	165,766		$	(1,333,151	)	$	1,348,814
Liabilities and Equity
Liabilities
Debt, net	$	—	$	361,537	$	—		$	8,433		$	—		$	369,970
Accounts payable and accrued expenses		22,317		10,824		2,430			403			—			35,974
Deferred revenue		—		436		17,826			4,875			—			23,137
Lease deposits and other obligations to tenants		—		—		18,539			1,618			—			20,157
Total liabilities		22,317		372,797		38,795			15,329			—			449,238
Total Medical Properties Trust Inc. stockholder's equity		899,462		899,835		282,765			150,437			(1,333,037	)		899,462
Non-controlling interests		114		114		—			—			(114	)		114
Total equity		899,576		899,949		282,765			150,437			(1,333,151	)		899,576
Total Liabilities and Equity	$	921,893	$	1,272,746	$	321,560		$	165,766		$	(1,333,151	)	$	1,348,814

Condensed Consolidated Statements of Income

For the Three Months Ended September 30, 2010

(in thousands)

	Parent			Subsidiary Issuers			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Rent billed	$	—		$	—		$	20,116		$	3,682		$	(326	)	$	23,472
Straight-line rent		—			—			(1,612	)		488			—			(1,124	)
Interest and fee income		—			1,420			4,216			2,192			(1,532	)		6,296
Total revenues		—			1,420			22,720			6,362			(1,858	)		28,644
Expenses
Real estate depreciation and amortization		—			—			5,421			788			—			6,209
Impairment charge		—			—			—			—			—			—
Property-related		—			(43	)		640			329			(326	)		600
General and administrative		(9	)		5,781			—			77			—			5,849
Acquisition expenses		—			364			—			—			—			364
Total operating expenses		(9	)		6,102			6,061			1,194			(326	)		13,022
Operating income (loss)		9			(4,682	)		16,659			5,168			(1,532	)		15,622
Other income (expense)
Interest income and other		—			(17	)		1,494			(2	)		—			1,475
Debt refinancing costs		—			(342	)		—			—			—			(342	)
Interest expense		—			(8,058	)		(5	)		(1,561	)		1,532			(8,092	)
Net other income (expense)		—			(8,417	)		1,489			(1,563	)		1,532			(6,959	)
Income (loss) from continuing operations		9			(13,099	)		18,148			3,605			—			8,663
Income (loss) from discontinued operations		—			—			(154	)		455			—			301
Equity in earnings of consolidated subsidiaries net of income taxes		8,955			22,054			1,073			—			(32,082	)		—
Net income (loss)		8,964			8,955			19,067			4,060			(32,082	)		8,964
Net income (loss) attributable to non-controlling interests		(45	)		(45	)		—			—			45			(45	)
Net income attributable to MPT common stockholders	$	8,919		$	8,910		$	19,067		$	4,060		$	(32,037	)	$	8,919

Condensed Consolidated Statements of Income

For the Nine Months Ended September 30, 2010

(in thousands)

				Subsidiary			Subsidiary			Non-Guarantor						Total
	Parent			Issuers			Guarantors			Subsidiaries			Eliminations			Consolidated
Revenues
Rent billed	$	—		$	—		$	59,011		$	10,726		$	(705	)	$	69,032
Straight-line rent		—			—			(951	)		1,420			—			469
Interest and fee income		—			5,561			12,621			8,411			(5,999	)		20,594
Total revenues		—			5,561			70,681			20,557			(6,704	)		90,095
Expenses
Real estate depreciation and amortization		—			—			15,740			2,360			—			18,100
Impairment charge		—			—			—			12,000			—			12,000
Property-related		—			5			2,020			735			(705	)		2,055
General and administrative		74			20,216			—			242			—			20,532
Acquisition expenses		—			1,314			—			—			—			1,314
Total operating expenses		74			21,535			17,760			15,337			(705	)		54,001
Operating income (loss)		(74	)		(15,974	)		52,921			5,220			(5,999	)		36,094
Other income (expense)
Interest income and other		—			—			1,494			(6	)		—			1,488
Debt refinancing costs		—			(6,556	)		—			—			—			(6,556	)
Interest expense		—			(25,706	)		(33	)		(6,366	)		5,999			(26,106	)
Net other income (expense)		—			(32,262	)		1,461			(6,372	)		5,999			(31,174	)
Income (loss) from continuing operations		(74	)		(48,236	)		54,382			(1,152	)		—			4,920
Income (loss) from discontinued operations		—			—			(561	)		8,024			—			7,463
Equity in earnings of consolidated subsidiaries net of income taxes		12,457			60,693			3,201			—			(76,351	)		—
Net income (loss)		12,383			12,457			57,022			6,872			(76,351	)		12,383
Net income (loss) attributable to non-controlling interests		(63	)		(63	)		—			—			63			(63	)
Net income attributable to MPT common stockholders	$	12,320		$	12,394		$	57,022		$	6,872		$	(76,288	)	$	12,320

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2010

(in thousands)

	Parent			Subsidiary Issuers			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(1,885	)	$	(19,512	)	$	68,429		$	461		$	—		$	47,493
Investing Activities
Real estate acquired		—			—			(73,851	)		—			—			(73,851	)
Principal received on loans receivable		—			—			—			46,532			—			46,532
Proceeds from sales of real estate		—			—			—			75,000			—			75,000
Investments in and advances to subsidiaries		(231,996	)		49,874			8,711			(60,470	)		233,881			—
Investments in loans receivable and other investments		—			—			(5,000	)		(4,626	)		—			(9,626	)
Construction in progress and other		—			(13	)		(1,607	)		(13,958	)		—			(15,578	)
Net cash provided by (used in) investing activities		(231,996	)		49,861			(71,747	)		42,478			233,881			22,477
Financing Activities
Revolving credit facilities, net		—			(96,000	)		—			(41,200	)		—			(137,200	)
Additions to term debt		—			148,500			—			—			—			148,500
Payments of term debt		—			(216,145	)		—			(180	)		—			(216,325	)
Distributions paid		(54,589	)		(54,761	)		—			—			54,589			(54,761	)
Sale of common stock, net		288,470			288,470			—			—			(288,470	)		288,470
Lease deposits and other obligations to tenants		—			—			3,318			(1,085	)		—			2,233
Debt issuance costs paid and other financing activities		—			(9,713	)		—			—			—			(9,713	)
Net cash provided by financing activities		233,881			60,351			3,318			(42,465	)		(233,881	)		21,204
Increase in cash and cash equivalents for period		—			90,700			—			474			—			91,174
Cash and cash equivalents at beginning of period		—			14,814			—			493			—			15,307
Cash and cash equivalents at end of period	$	—		$	105,514		$	—		$	967		$	—		$	106,481