14.

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 senior unsecured 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 Sheets

December 31, 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	$	—	$	37	$	1,127,441		$	147,921		$	—		$	1,275,399
Mortgage loans		—		—		165,000			—			—			165,000

Gross investment in real estate assets		—		37		1,292,441			147,921			—			1,440,399
Accumulated depreciation and amortization		—		—		(89,788	)		(13,949	)		—			(103,737	)

Net investment in real estate assets		—		37		1,202,653			133,972			—			1,336,662
Cash & cash equivalents		—		101,230		—			1,496			—			102,726
Interest and rent receivables		—		399		22,525			6,938			—			29,862
Straight-line rent receivables		—		—		24,000			9,993			—			33,993
Other loans		—		177		—			74,662			—			74,839
Net intercompany receivable (payable)		21,955		872,382		(888,866	)		(5,471	)		—			—
Investment in subsidiaries		829,205		489,858		43,008			—			(1,362,071	)		—
Other assets		—		27,284		1,727			14,781			—			43,792

Total Assets	$	851,160	$	1,491,367	$	405,047		$	236,371		$	(1,362,071	)	$	1,621,874

Liabilities and Equity
Liabilities
Debt, net	$	—	$	635,820	$	—		$	54,029		$	—		$	689,849
Accounts payable and accrued expenses		22,345		25,783		2,576			421			—			51,125
Deferred revenue		—		559		17,488			5,260			—			23,307
Lease deposits and other obligations to tenants		—		—		27,874			904			—			28,778

Total liabilities		22,345		662,162		47,938			60,614			—			793,059
Total Medical Properties Trust Inc. stockholder's equity		828,815		829,205		357,109			175,757			(1,362,071	)		828,815

Non-controlling interests		—		—		—			—			—			—

Total equity		828,815		829,205		357,109			175,757			(1,362,071	)		828,815

Total Liabilities and Equity	$	851,160	$	1,491,367	$	405,047		$	236,371		$	(1,362,071	)	$	1,621,874

Condensed Consolidated Statements of Income

For the Year Ended December 31, 2011

(in thousands)


	Parent			Subsidiary Issuers			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Rent billed	$	—		$	—		$	100,759	$	18,368		$	(3,092	)	$	116,035
Straight-line rent		—			—			3,538		2,256			—			5,794
Interest and fee income		—			6,123			17,001		4,601			(6,235	)		21,490

Total revenues		—			6,123			121,298		25,225			(9,327	)		143,319
Expenses
Real estate depreciation and amortization		—			—			29,279		3,622			—			32,901
Impairment charge		—			—			564		—			—			564
Property-related		—			217			834		3,131			(3,092	)		1,090
General and administrative		17			27,626			—		3,760			—			31,403

Total operating expenses		17			27,843			30,677		10,513			(3,092	)		65,958

Operating income		(17	)		(21,720	)		90,621		14,712			(6,235	)		77,361
Other income (expense)
Interest income and other		—			26			345		(275	)		—			96
Debt refinancing costs		—			(14,109	)		—		(105	)		—			(14,214	)
Interest expense		—			(43,064	)		880		(7,863	)		6,235			(43,812	)

Net other expense		—			(57,147	)		1,225		(8,243	)		6,235			(57,930	)

Income (loss) from continuing operations		(17	)		(78,867	)		91,846		6,469			—			19,431
Income (loss) from discontinued operations		—			—			98		7,185			—			7,283

Equity in earnings of consolidated subsidiaries net of income taxes		26,731			105,598			4,578		—			(136,907	)		—

Net income		26,714			26,731			96,522		13,654			(136,907	)		26,714
Net income attributable to non-controlling interests		(178	)		(178	)		—		—			178			(178	)

Net income attributable to MPT common stockholders	$	26,536		$	26,553		$	96,522	$	13,654		$	(136,729	)	$	26,536

Condensed Consolidated Statements of Cash Flows

For the Year Ended December 31, 2011

(in thousands)


	Parent			Subsidiary Issuers			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(209	)	$	(48,779	)	$	112,311		$	15,947		$	—		$	79,270
Investing Activities
Real estate acquired		—			—			(241,626	)		(4,885	)		—			(246,511	)
Principal received on loans receivable		—			—			230			4,059			—			4,289
Proceeds from sales of real estate		—			—			—			41,130			—			41,130
Investments in and advances to subsidiaries		89,551			(92,052	)		142,448			(50,605	)		(89,342	)		—
Investments in loans receivable and other investments		—			—			(230	)		(27,914	)		—			(28,144	)
Construction in progress and other		—			(6,466	)		(24,081	)		(5,838	)		—			(36,385	)

Net cash provided by (used in) investing activities		89,551			(98,518	)		(123,259	)		(44,053	)		(89,342	)		(265,621	)

Financing Activities
Revolving credit facilities, net		—			50,000			—			39,600			—			89,600
Proceeds from term debt, net of discount		—			450,000			—			—			—			450,000
Payments of term debt		—			(237,666	)		—			(8,596	)		—			(246,262	)
Distributions paid		(89,342	)		(89,601	)		—			—			89,342			(89,601	)
Proceeds from sale of common shares/units, net of offering costs		—			—			—			—			—			—
Lease deposits and other obligations to tenants		—			—			10,948			(2,327	)		—			8,621
Debt issuance costs paid and other financing activities		—			(21,028	)		—			(661	)		—			(21,689	)

Net cash provided by (used in) financing activities		(89,342	)		151,705			10,948			28,016			89,342			190,669

Increase (decrease) in cash and cash equivalents for period		—			4,408			—			(90	)		—			4,318
Cash and cash equivalents at beginning of period		—			96,822			—			1,586			—			98,408

Cash and cash equivalents at end of period	$	—		$	101,230		$	—		$	1,496		$	—		$	102,726

Condensed Consolidated Balance Sheets

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	$	861,599		$	128,652		$	—		$	990,548
Real estate held for sale		—		—		—			37,514			—			37,514
Mortgage loans		—		—		165,000			—			—			165,000

Gross investment in real estate assets		—		297		1,026,599			166,166			—			1,193,062
Accumulated depreciation and amortization		—		—		(61,460	)		(10,327	)		—			(71,787	)

Net investment in real estate assets		—		297		965,139			155,839			—			1,121,275
Cash & cash equivalents		—		96,822		—			1,586			—			98,408
Interest and rent receivables		—		157		20,692			5,327			—			26,176
Straight-line rent receivables		—		—		20,052			8,860			—			28,912
Other loans		—		178		—			50,807			—			50,985
Net intercompany receivable (payable)		21,944		774,771		(747,895	)		(48,820	)		—			—
Investment in subsidiaries		899,949		390,232		42,970			—			(1,333,151	)		—
Other assets		—		10,289		1,182			11,587			—			23,058

Total Assets	$	921,893	$	1,272,746	$	302,140		$	185,186		$	(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		2,378			455			—			35,974
Deferred revenue		—		436		17,616			5,085			—			23,137
Lease deposits and other obligations to tenants		—		—		17,019			3,138			—			20,157

Total liabilities		22,317		372,797		37,013			17,111			—			449,238
Total Medical Properties Trust Inc. stockholder's equity		899,462		899,835		265,127			168,075			(1,333,037	)		899,462

Non-controlling interests		114		114		—			—			(114	)		114

Total equity		899,576		899,949		265,127			168,075			(1,333,151	)		899,576

Total Liabilities and Equity	$	921,893	$	1,272,746	$	302,140		$	185,186		$	(1,333,151	)	$	1,348,814

Condensed Consolidated Statements of Income

For the Year Ended December 31, 2010

(in thousands)


	Parent			Subsidiary Issuers			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Rent billed	$	—		$	—		$	73,617	$	15,900		$	(1,030	)	$	88,487
Straight-line rent		—			—			222		1,711			—			1,933
Interest and fee income		—			6,964			16,755		10,572			(7,514	)		26,777

Total revenues		—			6,964			90,594		28,183			(8,544	)		117,197
Expenses
Real estate depreciation and amortization		—			—			19,251		3,579			—			22,830
Impairment charge		—			—			—		12,000			—			12,000
Property-related		—			(4	)		4,365		1,067			(1,030	)		4,398
General and administrative		75			27,867			—		593			—			28,535

Total operating expenses		75			27,863			23,616		17,239			(1,030	)		67,763

Operating income		(75	)		(20,899	)		66,978		10,944			(7,514	)		49,434
Other income (expense)
Interest income and other		—			(14	)		—		1,532			—			1,518
Debt refinancing costs		—			(6,716	)		—		—			—			(6,716	)
Interest expense		—			(33,623	)		31		(7,910	)		7,514			(33,988	)

Net other expense		—			(40,353	)		31		(6,378	)		7,514			(39,186	)

Income (loss) from continuing operations		(75	)		(61,252	)		67,009		4,566			—			10,248
Income (loss) from discontinued operations		—			—			121		12,643			—			12,764

Equity in earnings of consolidated subsidiaries net of income taxes		23,087			84,339			4,273		—			(111,699	)		—

Net income		23,012			23,087			71,403		17,209			(111,699	)		23,012
Net income attributable to non-controlling interests		(99	)		(99	)		—		—			99			(99	)

Net income attributable to MPT common stockholders	$	22,913		$	22,988		$	71,403	$	17,209		$	(111,600	)	$	22,913

Condensed Consolidated Statements of Cash Flows

For the Year Ended December 31, 2010

(in thousands)


	Parent			Subsidiary Issuers			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(29	)	$	(54,909	)	$	89,780		$	25,795		$	—		$	60,637
Investing Activities
Real estate acquired		—			—			(137,808	)		—			—			(137,808	)
Principal received on loans receivable		—			—			—			90,486			—			90,486
Proceeds from sales of real estate		—			—			2,669			95,000			—			97,669
Investments in and advances to subsidiaries		(211,181	)		99,564			54,409			(154,002	)		211,210			—
Investments in loans receivable and other investments		—			—			(5,000	)		(6,637	)		—			(11,637	)
Construction in progress and other		—			(108	)		(8,267	)		(7,554	)		—			(15,929	)

Net cash provided by (used in) investing activities		(211,181	)		99,456			(93,997	)		17,293			211,210			22,781

Financing Activities
Revolving credit facilities, net		—			(96,000	)		—			(41,200	)		—			(137,200	)
Proceeds from term debt, net of discount		—			148,500			—			—			—			148,500
Payments of term debt		—			(216,520	)		—			(245	)		—			(216,765	)
Distributions paid		(76,856	)		(77,087	)		—			—			76,856			(77,087	)
Proceeds from sale of common shares/units, net of offering costs		288,066			288,066			—			—			(288,066	)		288,066
Lease deposits and other obligations to tenants		—			—			4,217			(550	)		—			3,667
Debt issuance costs paid and other financing activities		—			(9,498	)		—			—			—			(9,498	)

Net cash provided by (used in) financing activities		211,210			37,461			4,217			(41,995	)		(211,210	)		(317	)

Increase in cash and cash equivalents for period		—			82,008			—			1,093			—			83,101
Cash and cash equivalents at beginning of period		—			14,814			—			493			—			15,307

Cash and cash equivalents at end of period	$	—		$	96,822		$	—		$	1,586		$	—		$	98,408

Condensed Consolidated Statements of Income

For the Year Ended December 31, 2009

(in thousands)


	Parent			Subsidiary Issuers			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Rent billed	$	—		$	—		$	63,282		$	14,589		$	—		$	77,871
Straight-line rent		—			—			5,966			2,072			—			8,038
Interest and fee income		—			10,010			14,388			14,150			(10,419	)		28,129

Total revenues		—			10,010			83,636			30,811			(10,419	)		114,038
Expenses
Real estate depreciation and amortization		—			—			17,926			3,662			—			21,588
Impairment charge		—			—			—			—			—			—
Property-related		—			(20	)		3,778			43			—			3,801
General and administrative		63			20,631			—			402			—			21,096

Total operating expenses		63			20,611			21,704			4,107			—			46,485

Operating income		(63	)		(10,601	)		61,932			26,704			(10,419	)		67,553
Other income (expense)
Interest income and other		—			51			—			(8	)		—			43
Debt refinancing costs		—			—			—			—			—			—
Interest expense		—			(36,760	)		—			(11,310	)		10,419			(37,651	)

Net other income (expense)		—			(36,709	)		—			(11,318	)		10,419			(37,608	)

Income (loss) from continuing operations		(63	)		(47,310	)		61,932			15,386			—			29,945
Income (loss) from discontinued operations		—			—			(1,254	)		7,676			—			6,422

Equity in earnings of consolidated subsidiaries net of income taxes		36,430			83,740			3,918			—			(124,088	)		—

Net income		36,367			36,430			64,596			23,062			(124,088	)		36,367
Net income attributable to non-controlling interests		(37	)		(37	)		—			—			37			(37	)

Net income attributable to MPT common stockholders	$	36,330		$	36,393		$	64,596		$	23,062		$	(124,051	)	$	36,330

Condensed Consolidated Statements of Cash Flows

For the Year Ended December 31, 2009

(in thousands)


	Parent			Subsidiary Issuers			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(268	)	$	(35,554	)	$	69,738		$	28,835		$	—		$	62,751

Investing Activities
Real estate acquired		—			—			(421	)		—			—			(421	)
Principal received on loans receivable		—			—			—			4,305			—			4,305
Proceeds from sales of real estate		—			—			—			15,000			—			15,000
Investments in and advances to subsidiaries		(6,699	)		89,642			(53,811	)		(35,716	)		6,584			—
Investments in loans receivable and other investments		—			—			(15,000	)		(8,243	)		—			(23,243	)
Construction in progress and other		—			—			(3,067	)		(4,710	)		—			(7,777	)

Net cash provided by (used in) investing activities		(6,699	)		89,642			(72,299	)		(29,364	)		6,584			(12,136	)

Financing Activities
Revolving credit facilities, net		—			(55,000	)		—			(800	)		—			(55,800	)
Proceeds from term debt, net of discount		—			—			—			—			—			—
Payments of term debt		—			(960	)		—			(272	)		—			(1,232	)
Distributions paid		(61,419	)		(61,649	)		—			—			61,419			(61,649	)
Proceeds from sale of common shares/units, net of offering costs		68,003			68,003			—			—			(68,003	)		68,003
Lease deposits and other obligations to tenants		—			—			2,561			829			—			3,390
Debt issuance costs paid and other financing activities		378			(149	)		—			3			—			232

Net cash provided by (used in) financing activities		6,962			(49,755	)		2,561			(240	)		(6,584	)		(47,056	)

Increase in cash and cash equivalents for period		(5	)		4,333			—			(769	)		—			3,559
Cash and cash equivalents at beginning of period		5			10,481			—			1,262			—			11,748

Cash and cash equivalents at end of period	$	—		$	14,814		$	—		$	493		$	—		$	15,307