Medical Properties Reports $202 Million Third-Quarter Profit

The Tip Desk · October 31, 2026 · 3 min read

The hospital REIT reported third-quarter 2026 revenue of $250.1 million and net income of $202 million, or $0.34 a share, after asset sales and a $70 million refinancing gain, while NFFO slipped to $0.11 a share.

Medical Properties Trust, Inc. (MPT) reported revenue of $250.1 million and net income of $202 million, or $0.34 a share, for the third quarter ended September 30, 2026. The company completed a previously announced $2.4 billion private offering of secured notes in the third quarter and used the proceeds to repay existing debt, including the 2026 notes and about half of the 2027 notes, producing a $70 million gain.

The hospital real estate owner also closed asset sales that generated about $680 million of cash proceeds and an aggregate $158 million gain. The company sold its remaining interest in five hospitals in Utah for about $174 million and its interest in the real estate of two hospitals in Idaho to affiliates of Intermountain Health for about $371 million. Those proceeds, the company said, are available for debt repayment and other balance-sheet work.

Net income was $202 million, or $0.34 a share, compared with a net loss of $78 million, or $0.13 a share, a year earlier. In the immediately preceding quarter the company had reported a net loss of $3 million, or $0.01 a share. The swing from that second-quarter loss reflected the asset-sale gains and a $69.5 million debt-refinancing benefit.

Normalized funds from operations were $64 million, or $0.11 a share, versus $77 million, or $0.13 a share, a year earlier. NFFO had been $92 million, or $0.15 a share, in the second quarter. Chairman, President and Chief Executive Officer Edward K. Aldag, Jr. said HSA’s failure to pay September rent reduced NFFO by two cents during the quarter. The company said it provided additional working-capital support to HSA. HSA engaged Ovation Healthcare to oversee operations across its portfolio and improve billings and collections.

Total revenues for the three months ended September 30, 2026 were $250.1 million. Rent billed was $195.3 million. Straight-line rent was $35.7 million. Interest expense was $153.1 million. Gain on sale of real estate was $157.8 million. Real estate and other impairment charges were $23.9 million.

The portfolio shrank with the sales. As of September 30, 2026, MPT had 365 properties and about 37,000 licensed beds leased to or mortgaged by 52 hospital operating companies, with total assets of about $14.4 billion, including $8.3 billion of general acute facilities, $2.4 billion of behavioral health and $1.6 billion of post-acute. At June 30 the company had 373 properties, about 38,000 beds and about $15 billion of assets, including $8.8 billion of general acute. At March 31 it had 378 properties.

Debt, net, was $9.26 billion at September 30, 2026, down from $9.70 billion at year-end 2025. Cash and cash equivalents were $599.3 million. The company paid a regular quarterly dividend of $0.09 a share in October 2026, matching the $0.09 declared in the third quarter.

Aldag said the quarter’s steps were intended to strengthen the balance sheet and create flexibility to further reduce debt and pursue selective growth. The company continues to expect portfolio cash rents in excess of $1.0 billion in 2027 after the third-quarter asset sales, including conservative assumptions for cash-basis tenants such as HSA.