M
edical Properties Trust (MPT) has reached a global settlement agreement with Steward Health Care System (Steward) and its secured lenders (the Lenders) to restore MPT's control over its real estate and facilitate the immediate transition of operations to quality replacement operators at 15 hospitals across the country. The settlement agreement involves 23 hospitals previously operated by Steward, which will remain after the anticipated "Space Coast" transaction described later in this press release.

    MPT has already reached definitive agreements with four tenants to immediately lease and operate 15 hospitals in Arizona, Florida, Louisiana, Ohio, and Texas. These replacement operators will be responsible for the expenses of the hospitals each will manage for Steward on an interim basis until purchase agreements can be finalized with Steward regarding the operations.

    The new lease agreements already in place will result in aggregate annualized cash rental payments of approximately $160 million on this portfolio's approximate $2.0 billion lease base upon stabilization in the fourth quarter of 2026. The weighted average initial term of the leases is approximately 18 years.

    The agreement also remains subject to the completion of Steward's sales to the replacement operators and approval by relevant state and local regulators. The Bankruptcy Court has scheduled a hearing for Tuesday, September 17, for consideration and approval of a final order confirming the settlement.

    About Medical Properties Trust, Inc.: Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world's largest owners of hospital real estate with 435 facilities and approximately 42,000 licensed beds in nine countries and across three continents as of June 30, 2024.