Medical Properties Trust has entered into an agreement to lease substantially all of its Utah hospitals to HCA Healthcare following an agreement by HCA Healthcare to purchase the operations of five Utah facilities from Steward Health Care System. Terms of the sale are confidential.
MPT’s purchase price of $1.2 billion for the Utah hospitals represents approximately 5% of the company’s total pro forma gross assets, which will place HCA Healthcare among the five largest tenants in the MPT portfolio. Following completion of this agreement with HCA Healthcare and closing of other recently announced transactions, the percentage of MPT’s portfolio represented by Steward assets is expected to decrease to approximately 17%.
Since the acquisition of the Utah hospitals in 2017, MPT has recorded more than $300 million in real estate rent and interest from the properties. Upon completion of the transaction between HCA Healthcare and Steward, MPT and HCA Healthcare will enter into a new 15-year master lease for the five Utah hospitals, with no change to the cash rent payable to MPT under the existing Steward master lease. Read more.
