Executive Summary
Medical Properties Trust Inc (0JZZ.L) reported QQ3 2024 results with a revenue base of $225.8 million and a striking negative bottom-line result driven by substantial non-cash and other expense items. Net income and EPS declined sharply, with net income at -$801.2 million and EPS -$1.34, while EBITDA stood at -$479.2 million and EBITDARatio at -2.12. The quarter was characterized by a large impairment/other expense impact (total other income/expenses net at -$771.2 million), which severely distorted earnings and cash-flow quality. Operating cash flow was positive at $59.2 million, yet free cash flow after capex remained marginal given the scale of asset investments and ongoing de-leveraging requirements. Balance sheet leverage remains thick, with total debt of $9.22 billion and net debt of $8.94 billion, and tangible asset values heavily skewed toward intangibles (approximately $11.65 billion). The combination of muted current earnings, elevated debt load, and meaningful non-cash charges signals that the investment thesis hinges on de-leveraging, portfolio optimization, and potential asset dispositions to restore earnings quality and balance-sheet resilience. valuations imply a significant discount to peer REITs on earnings power, while book-value based metrics show the stock trading at a multiple that reflects both uncertainty and embedded asset value.
Key Performance Indicators
QoQ: -15.28% | YoY:-26.34%
QoQ: -14.70% | YoY:-26.41%
QoQ: -117.03% | YoY:-111.22%
QoQ: -149.87% | YoY:-786.46%
QoQ: -148.15% | YoY:-805.26%
Key Insights
Revenue: $225.83m, YoY -26.34%, QoQ -15.28%; Gross Profit: $220.83m, YoY -26.41%, QoQ -14.70%; Operating Income: -$20.67m, YoY -111.22%, QoQ -117.03%; Net Income: -$801.16m, YoY -786.46%, QoQ -149.87%; EPS: -$1.34, YoY -805.26%, QoQ -148.15%; EBITDA: -$479.18m, EBITDARatio: -2.12; Net Margin: -3.55%; Gross Margin: 97.79%; Operating Margin: -0.92%; Interest Expense: $106.24m; Depreciation & Amortization: $206.47m; Total Other Income/Expenses Net: -$771.23m; Income Before Tax: -$791.90m; Incom...
Financial Highlights
Revenue: $225.83m, YoY -26.34%, QoQ -15.28%; Gross Profit: $220.83m, YoY -26.41%, QoQ -14.70%; Operating Income: -$20.67m, YoY -111.22%, QoQ -117.03%; Net Income: -$801.16m, YoY -786.46%, QoQ -149.87%; EPS: -$1.34, YoY -805.26%, QoQ -148.15%; EBITDA: -$479.18m, EBITDARatio: -2.12; Net Margin: -3.55%; Gross Margin: 97.79%; Operating Margin: -0.92%; Interest Expense: $106.24m; Depreciation & Amortization: $206.47m; Total Other Income/Expenses Net: -$771.23m; Income Before Tax: -$791.90m; Income Tax Expense: $9.03m; Weighted Avg Shares: 600.23m; Cash from Operations: $59.20m; Capex: $195.49m; Free Cash Flow: $59.20m; Net Change in Cash: -$331.42m; Cash at End of Period: $279.75m; Total Assets: $15,236.16m; Total Liabilities: $9,795.06m; Shareholders’ Equity: $5,438.56m; Total Debt: $9,215.75m; Net Debt: $8,940.14m; Intangible Assets: $11,653.95m; Long-Term Debt: $9,352.39m; Short-Term Debt: $136.64m; Cash & Equivalents: $275.62m.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
225.83M |
-26.34% |
-15.28% |
| Gross Profit |
220.83M |
-26.41% |
-14.70% |
| Operating Income |
-20.67M |
-111.22% |
-117.03% |
| Net Income |
-801.16M |
-786.46% |
-149.87% |
| EPS |
-1.34 |
-805.26% |
-148.15% |
Key Financial Ratios
operatingProfitMargin
-71.1%
operatingCashFlowPerShare
$0.1
freeCashFlowPerShare
$0.1
dividendPayoutRatio
-11.3%
Management Commentary
Transcript not available in the provided data. No management quotes or call highlights could be extracted from the QQ3 2024 materials. This section would typically summarize strategic themes (portfolio strategy, deleveraging plans, capital allocation) and management tone, were the transcript available.
Forward Guidance
There is no explicit forward guidance provided in the supplied data. Given the QQ3 2024 results, the proximal near-term focus for Medical Properties Trust is likely to center on liquidity preservation and debt management rather than upside earnings surprises. Investors should monitor: (1) debt maturity schedules and refinancing risk, (2) any asset dispositions or portfolio restructuring aimed at de-leveraging, (3) rent collection and occupancy trends in core hospital properties, (4) lease escalators and inflation protection to support cash flow, and (5) any operational improvements from portfolio optimization. In a scenario where management advances a credible deleveraging plan and stabilizes cash flows, the stock could re-rate on earnings quality and reduced financial risk. In a downside scenario, continued impairment charges or slower-than-expected monetization of assets could sustain the earnings stress and restrict multiple expansion.