13.

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 and 2012 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 and 2012 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 and 2012 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 and 2012 Senior Unsecured Notes; or (6) the release or discharge of the Subsidiary Guarantor from its guarantee obligations under our revolving credit facility.

Subsequent to December 31, 2011, certain of our subsidiaries were re-designated as guarantors of our 2011 and 2012 Senior Unsecured Notes (such subsidiaries were non-guarantors in 2011), while other subsidiaries have been re-designated as non-guarantors as the underlying properties were sold in 2012 (such subsidiaries were guarantors during 2011). With these re-designations, we have restated the 2011 and 2010 consolidating financial information below to reflect these changes.

Condensed Consolidated Balance Sheets

December 31, 2012

(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	$	—	$	28	$	1,214,740		$	65,947		$	—		$	1,280,715
Net investment in direct financing leases		—		—		110,155			204,257						314,412
Mortgage loans		—		—		268,650			100,000			—			368,650

Gross investment in real estate assets		—		28		1,593,545			370,204			—			1,963,777
Accumulated depreciation and amortization		—		—		(120,282	)		(6,452	)		—			(126,734	)

Net investment in real estate assets		—		28		1,473,263			363,752			—			1,837,043
Cash and cash equivalents		—		35,483		1,565			263			—			37,311
Interest and rent receivables		—		212		29,315			15,762			—			45,289
Straight-line rent receivables		—		—		29,314			6,546			—			35,860
Other loans		—		177		—			159,066			—			159,243
Net intercompany receivable (payable)		27,393		1,373,941		(1,010,400	)		(390,934	)		—			—
Investment in subsidiaries		1,050,204		647,029		42,666			—			(1,739,899	)		—
Other assets		—		31,097		1,522			31,521			—			64,140

Total Assets	$	1,077,597	$	2,087,967	$	567,245		$	185,976		$	(1,739,899	)	$	2,178,886

Liabilities and Equity
Liabilities
Debt, net	$	—	$	1,010,962	$	—		$	14,198		$	—		$	1,025,160
Accounts payable and accrued expenses		27,783		26,658		10,492			1,028			—			65,961
Deferred revenue		—		143		19,643			823			—			20,609
Lease deposits and other obligations to tenants		—		—		16,607			735			—			17,342

Total liabilities		27,783		1,037,763		46,742			16,784			—			1,129,072

Total Equity		1,049,814		1,050,204		520,503			169,192			(1,739,899	)		1,049,814

Total Liabilities and Equity	$	1,077,597	$	2,087,967	$	567,245		$	185,976		$	(1,739,899	)	$	2,178,886

Condensed Consolidated Statements of Income

For the Year Ended December 31, 2012

(in thousands)


	Parent			Subsidiary Issuers			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Rent billed	$	—		$	—		$	115,770	$	16,619		$	(9,309	)	$	123,080
Straight-line rent		—			—			6,500		1,482			—			7,982
Income from direct financing leases		—			—			19,870		18,090			(16,232	)		21,728
Interest and fee income		—			18,341			29,610		25,387			(24,731	)		48,607

Total revenues		—			18,341			171,750		61,578			(50,272	)		201,397
Expenses
Real estate depreciation and amortization		—			—			31,845		1,700			—			33,545
Property-related		—			495			834		25,707			(25,541	)		1,495
Acquisition expenses		—			5,420			—		—			—			5,420
General and administrative		—			26,018			—		2,564			—			28,582

Total operating expenses		—			31,933			32,679		29,971			(25,541	)		69,042

Operating income		—			(13,592	)		139,071		31,607			(24,731	)		132,355
Other income (expense)
Interest and other (expense) income		—			(69	)		—		(1,593	)		—			(1,662	)
Earnings from equity and other interests		—			—			1,061		1,882			—			2,943
Interest expense		—			(58,729	)		1,408		(25,653	)		24,731			(58,243	)

Net other expense		—			(58,798	)		2,469		(25,364	)		24,731			(56,962	)

Income (loss) from continuing operations		—			(72,390	)		141,540		6,243			—			75,393
Income (loss) from discontinued operations		—			—			102		14,582			—			14,684

Equity in earnings of consolidated subsidiaries net of income taxes		90,077			162,467			4,481		—			(257,025	)		—

Net income (loss)		90,077			90,077			146,123		20,825			(257,025	)		90,077
Net income (loss) attributable to non-controlling interests		(177	)		(177	)		—		—			177			(177	)

Net income attributable to MPT common stockholders	$	89,900		$	89,900		$	146,123	$	20,825		$	(256,848	)	$	89,900

Condensed Consolidated Statements of Comprehensive Income (Loss)

For the Year Ended December 31, 2012

(in thousands)


	Parent			Subsidiary Issuers			Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Net income	$	90,077		$	90,077		$	146,123	$	20,825	$	(257,025	)	$	90,077
Other comprehensive income:
Unrealized loss on interest rate swap		(251	)		(251	)		—		—		251			(251	)

Total comprehensive income		89,826			89,826			146,123		20,825		(256,774	)		89,826
Comprehensive income attributable to non-controlling interests		(177	)		(177	)		—		—		177			(177	)

Comprehensive income attributable to MPT common stockholders	$	89,649		$	89,649		$	146,123	$	20,825	($	256,597	)	$	89,649

Condensed Consolidated Statements of Cash Flows

For the Year Ended December 31, 2012

(in thousands)


	Parent			Subsidiary Issuers			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	57		$	(61,002	)	$	168,650		$	(2,396	)	$	—		$	105,309
Investing Activities
Cash paid for acquisitions and other related investments		—			—			(420,500	)		(200,990	)		—			(621,490	)
Net proceeds from sales of real estate		—			—			—			71,202			—			71,202
Principal received on loans receivable		—			—			5,491			5,440			—			10,931
Investments in and advances to subsidiaries		(129,421	)		(501,839	)		362,494			139,402			129,364			—
Investments in loans receivable		—			—			—			(1,293	)		—			(1,293	)
Construction in progress and other		—			(578	)		(66,467	)		(9,433	)		—			(76,478	)

Net cash provided by (used in) investing activities		(129,421	)		(502,417	)		(118,982	)		4,328			129,364			(617,128	)

Financing Activities
Additions to term debt		—			300,000			—			—			—			300,000
Payments of term debt		—			—			—			(232	)		—			(232	)
Revolving credit facilities, net		—			75,000			(39,600	)		—			—			35,400
Distributions paid		(103,684	)		(103,952	)		—			—			103,684			(103,952	)
Lease deposits and other obligations to tenants		—			—			(9,912	)		(1,524	)		—			(11,436	)
Proceeds from sale of common shares, net of offering costs		233,048			233,048			—			—			(233,048	)		233,048
Debt issuance costs paid and other financing activities		—			(6,424	)		—			—			—			(6,424	)

Net cash provided by (used in) financing activities		129,364			497,672			(49,512	)		(1,756	)		(129,364	)		446,404

Increase (decrease) in cash and cash equivalents for period		—			(65,747	)		156			176			—			(65,415	)
Cash and cash equivalents at beginning of period		—			101,230			1,409			87			—			102,726

Cash and cash equivalents at end of period	$	—		$	35,483		$	1,565		$	263		$	—		$	37,311

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	$	1,139,073		$	65,947		$	—		$	1,205,057
Real estate held for sale		—		—		4,240			55,553			—			59,793
Mortgage loans		—		—		165,000			—			—			165,000

Gross investment in real estate assets		—		37		1,308,313			121,500			—			1,429,850
Accumulated depreciation and amortization		—		—		(88,438	)		(4,750	)		—			(93,188	)

Net investment in real estate assets		—		37		1,219,875			116,750			—			1,336,662
Cash and cash equivalents		—		101,230		1,409			87			—			102,726
Interest and rent receivables		—		399		22,528			6,935			—			29,862
Straight-line rent receivables		—		—		22,813			11,180			—			33,993
Other loans		—		178		5,491			69,170			—			74,839
Net intercompany receivable (payable)		21,955		872,380		(847,921	)		(46,414	)		—			—
Investment in subsidiaries		829,205		489,858		43,008			—			(1,362,071	)		—
Other assets		—		27,285		2,151			14,356			—			43,792

Total Assets	$	851,160	$	1,491,367	$	469,354		$	172,064		$	(1,362,071	)	$	1,621,874

Liabilities and Equity
Liabilities
Debt, net	$	—	$	635,820	$	39,600		$	14,429		$	—		$	689,849
Accounts payable and accrued expenses		22,345		25,783		2,578			419			—			51,125
Deferred revenue		—		559		21,100			1,648			—			23,307
Lease deposits and other obligations to tenants		—		—		26,400			2,378			—			28,778

Total liabilities		22,345		662,162		89,678			18,874			—			793,059

Total Equity		828,815		829,205		379,676			153,190			(1,362,071	)		828,815

Total Liabilities and Equity	$	851,160	$	1,491,367	$	469,354		$	172,064		$	(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	$	—		$	—		$	102,541		$	9,286		$	(3,092	)	$	108,735
Straight-line rent		—			—			3,617			1,762			—			5,379
Interest and fee income		—			6,124			17,556			3,926			(6,236	)		21,370

Total revenues		—			6,124			123,714			14,974			(9,328	)		135,484
Expenses
Real estate depreciation and amortization		—			—			29,238			1,658			—			30,896
Property-related		—			217			472			3,141			(3,092	)		738
Acquisition expenses		—			3,713			—			471			—			4,184
General and administrative		17			23,914			—			3,288			—			27,219

Total operating expenses		17			27,844			29,710			8,558			(3,092	)		63,037

Operating income		(17	)		(21,720	)		94,004			6,416			(6,236	)		72,447
Other income (expense)
Interest and other (expense) income		—			26			2			(10	)		—			18
Earnings from equity and other interests		—			—			345			(267	)		—			78
Debt refinancing costs		—			(14,109	)		(105	)		—			—			(14,214	)
Interest expense		—			(43,063	)		139			(7,122	)		6,236			(43,810	)

Net other expense		—			(57,146	)		381			(7,399	)		6,236			(57,928	)

Income (loss) from continuing operations		(17	)		(78,866	)		94,385			(983	)		—			14,519
Income (loss) from discontinued operations		—			—			(1,970	)		14,165			—			12,195

Equity in earnings of consolidated subsidiaries net of income taxes		26,731			105,597			4,578			—			(136,906	)		—

Net income		26,714			26,731			96,993			13,182			(136,906	)		26,714
Net income attributable to non-controlling interests		(178	)		(178	)		—			—			178			(178	)

Net income attributable to MPT common stockholders	$	26,536		$	26,553		$	96,993		$	13,182		$	(136,728	)	$	26,536

Condensed Consolidated Statements of Comprehensive Income (Loss)

For the Year Ended December 31, 2011

(in thousands)


	Parent			Subsidiary Issuers			Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Net income	$	26,714		$	26,731		$	96,993	$	13,182	$	(136,906	)	$	26,714
Other comprehensive income:
Unrealized loss on interest rate swap		(8,590	)		(8,590	)		—		—		8,590			(8,590	)

Total comprehensive income		18,124			18,141			96,993		13,182		(128,316	)		18,124
Comprehensive income attributable to non-controlling interests		(178	)		(178	)		—		—		178			(178	)

Comprehensive income attributable to MPT common stockholders	$	17,946		$	17,963		$	96,993	$	13,182	$	(128,138	)	$	17,946

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	)	$	81,173		$	47,085		$	—		$	79,270

Investing Activities
Cash paid for acquisitions and other related investments		—			—			(241,626	)		(37,337	)		—			(278,963	)
Net proceeds from sales of real estate		—			—			—			41,130			—			41,130
Principal received on loans receivable		—			—			230			4,059			—			4,289
Investments in and advances to subsidiaries		89,551			(92,052	)		142,448			(50,605	)		(89,342	)		—
Investments in loans receivable		—			—			(230	)		(631	)		—			(861	)
Construction in progress and other		—			(6,466	)		(24,081	)		(669	)		—			(31,216	)

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

Financing Activities
Additions to term debt		—			450,000			—			—			—			450,000
Payments of term debt		—			(237,666	)		(8,433	)		(163	)		—			(246,262	)
Revolving credit facilities, net		—			50,000			39,600			—			—			89,600
Distributions paid		(89,342	)		(89,601	)		—			—			89,342			(89,601	)
Lease deposits and other obligations to tenants		—			—			10,941			(2,320	)		—			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			42,108			(3,144	)		89,342			190,669

Increase (decrease) in cash and cash equivalents for period		—			4,408			22			(112	)		—			4,318
Cash and cash equivalents at beginning of period		—			96,822			1,387			199			—			98,408

Cash and cash equivalents at end of period	$	—		$	101,230		$	1,409		$	87		$	—		$	102,726

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	$	—		$	—		$	74,281		$	7,019		$	(1,030	)	$	80,270
Straight-line rent		—			—			131			1,034			—			1,165
Interest and fee income		—			6,964			17,225			9,914			(7,514	)		26,589

Total revenues		—			6,964			91,637			17,967			(8,544	)		108,024
Expenses
Real estate depreciation and amortization		—			—			19,282			1,615			—			20,897
Impairment charge		—			—			—			12,000			—			12,000
Property-related		—			(4	)		4,375			1,040			(1,030	)		4,381
Acquisition expenses		—			2,026			—			—			—			2,026
General and administrative		75			25,841			—			593			—			26,509

Total operating expenses		75			27,863			23,657			15,248			(1,030	)		65,813

Operating income		(75	)		(20,899	)		67,980			2,719			(7,514	)		42,211
Other income (expense)
Interest and other (expense) income		—			(14	)		3			1,484			—			1,473
Earnings from equity and other interests		—			—			—			45			—			45
Debt refinancing costs		—			(6,716	)		—			—			—			(6,716	)
Interest expense		—			(33,623	)		(358	)		(7,517	)		7,514			(33,984	)

Net other income (expense)		—			(40,353	)		(355	)		(5,988	)		7,514			(39,182	)

Income (loss) from continuing operations		(75	)		(61,252	)		67,625			(3,269	)		—			3,029
Income (loss) from discontinued operations		—			—			896			19,087			—			19,983

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

Net income		23,012			23,087			72,794			15,818			(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		$	72,794		$	15,818		$	(111,600	)	$	22,913

Condensed Consolidated Statements of Comprehensive Income (Loss)

For the Year Ended December 31, 2010

(in thousands)


	Parent			Subsidiary Issuers			Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Net income	$	23,012		$	23,087		$	72,794	$	15,818	$	(111,699	)	$	23,012
Other comprehensive income:
Unrealized loss on interest rate swap		(3,641	)		(3,641	)		—		—		3,641			(3,641	)

Total comprehensive income		19,371			19,446			72,794		15,818		(108,058	)		19,371
Comprehensive income attributable to non-controlling interests		(99	)		(99	)		—		—		99			(99	)

Comprehensive income attributable to MPT common stockholders	$	19,272		$	19,347		$	72,794	$	15,818	$	(107,959	)	$	19,272

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	)	$	(54,908	)	$	92,121		$	23,453		$	—		$	60,637
Investing Activities
Cash paid for acquisitions and other related investments		—			—			(137,808	)		—			—			(137,808	)
Net proceeds from sales of real estate		—			—			2,669			95,000			—			97,669
Principal received on loans receivable		—			—			—			90,486			—			90,486
Investments in and advances to subsidiaries		(211,181	)		99,564			94,218			(193,811	)		211,210			—
Investments in loans receivable and other investments		—			—			(5,000	)		(6,637	)		—			(11,637	)
Construction in progress and other		—			(108	)		(7,281	)		(8,540	)		—			(15,929	)

Net cash provided by (used in) investing activities		(211,181	)		99,456			(53,202	)		(23,502	)		211,210			22,781
Financing Activities
Additions to term debt		—			148,500			—			—			—			148,500
Payments of term debt		—			(216,520	)		(245	)		—			—			(216,765	)
Revolving credit facilities, net		—			(96,000	)		(41,200	)		—			—			(137,200	)
Distributions paid		(76,856	)		(77,087	)		—			—			76,856			(77,087	)
Lease deposits and other obligations to tenants		—			—			3,459			208			—			3,667
Proceeds from sale of common shares/units, net of offering costs		288,066			288,066			—			—			(288,066	)		288,066
Debt issuance costs paid and other financing activities		—			(9,498	)		—			—			—			(9,498	)

Net cash provided by (used in) financing activities		211,210			37,461			(37,986	)		208			(211,210	)		(317	)

Increase in cash and cash equivalents for period		—			82,009			933			159			—			83,101
Cash and cash equivalents at beginning of period		—			14,813			454			40			—			15,307

Cash and cash equivalents at end of period	$	—		$	96,822		$	1,387		$	199		$	—		$	98,408