##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2010
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number 001-32559
 MEDICAL PROPERTIES TRUST, INC.
 (Exact Name of Registrant as Specified in Its Charter)
 MARYLAND
(State or other jurisdiction of 
incorporation or organization)
    
    20-0191742
(I. R. S. Employer
Identification No.)1000 URBAN CENTER DRIVE, SUITE 501
BIRMINGHAM, AL
(Address of principal executive offices)
    
    35242
(Zip Code)
 REGISTRANTS TELEPHONE NUMBER, INCLUDING AREA CODE: (205) 969-3755
 þ o
 o o
  Large accelerated filer o
    

Accelerated filer þ
    

Non-accelerated filer o
(Do not check if a smaller reporting company)
    

Smaller reporting company o
 o þ




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##### 



MEDICAL PROPERTIES TRUST, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2010
 Table of Contents
 PagePART I  FINANCIAL INFORMATIONItem 1 Financial Statements
    
    
    3Condensed Consolidated Balance Sheets at June 30, 2010 and December 31, 2009
    
    
    3Condensed Consolidated Statements of Income for the Three Months and Six Months Ended June 30,
2010 and 2009
    
    
    4Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2010 and 2009
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2 Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    12Item 3 Quantitative and Qualitative Disclosures about Market Risk
    
    
    16Item 4 Controls and Procedures
    
    
    17PART II  OTHER INFORMATIONItem 1 Legal Proceedings
    
    
    17Item 1A Risk Factors
    
    
    17Item 2 Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    17Item 3 Defaults Upon Senior Securities
    
    
    17Item 4 (Removed and Reserved)
    
    
    17Item 5 Other Information
    
    
    17Item 6 Exhibits
    
    
    18SIGNATURE
    
    
    19INDEX TO EXHIBITS
    
    
    20EX-31.1EX-31.2EX-32EX-99.1
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##### Table of Contents



PART I  FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
 
  June 30, 2010
    
    
    December 31, 2009(In thousands, except per share amounts)
    
    (Unaudited)
    
    
    (Note 2)AssetsReal estate assetsLand, buildings and improvements, and intangible lease assets
    
    $
    983,171
    
    
    $
    908,475Mortgage loans
    
    
    205,641
    
    
    
    200,164Real estate held for sale
    
    
    
    
    
    
    69,646Gross investment in real estate assets
    
    
    1,188,812
    
    
    
    1,178,285Accumulated depreciation and amortization
    
    
    (67,117
    )
    
    
    (54,948
    )Net investment in real estate assets
    
    
    1,121,695
    
    
    
    1,123,337Cash and cash equivalents
    
    
    121,637
    
    
    
    15,307Interest and rent receivable
    
    
    27,844
    
    
    
    19,845Straight-line rent receivable
    
    
    29,292
    
    
    
    27,539Other loans
    
    
    51,704
    
    
    
    110,842Assets of
discontinued operations
    
    
    875
    
    
    
    1,185Other assets
    
    
    29,238
    
    
    
    11,843Total Assets
    
    $
    1,382,285
    
    
    $
    1,309,898Liabilities and EquityLiabilitiesDebt, net
    
    $
    382,302
    
    
    $
    576,678Accounts payable and accrued expenses
    
    
    38,053
    
    
    
    29,247Deferred revenue
    
    
    21,366
    
    
    
    15,350Lease deposits and other obligations to tenants
    
    
    17,750
    
    
    
    17,048Total liabilities
    
    
    459,471
    
    
    
    638,323EquityPreferred stock, $0.001 par value. Authorized 10,000 shares; no
shares outstanding
    
    
    
    
    
    
    Common stock, $0.001 par value. Authorized 150,000 shares;
issued and outstanding  109,950 shares at June 30, 2010, and
78,725 shares at December 31, 2009
    
    
    110
    
    
    
    79Additional paid in capital
    
    
    1,049,358
    
    
    
    759,721Distributions in excess of net income
    
    
    (123,343
    )
    
    
    (88,093
    )Accumulated
other comprehensive loss
    
    
    (3,160
    )
    
    
    Treasury shares, at cost
    
    
    (262
    )
    
    
    (262
    )Total Medical Properties Trust, Inc. stockholders equity
    
    
    922,703
    
    
    
    671,445Non-controlling interests
    
    
    111
    
    
    
    130Total equity
    
    
    922,814
    
    
    
    671,575Total Liabilities and Equity
    
    $
    1,382,285
    
    
    $
    1,309,898
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##### Table of Contents



MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
 
 
 For the Three Months Ended June 30,
    
    
    For the Six Months Ended June 30,(In thousands, except per share amounts)
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009RevenuesRent billed
    
    $
    24,843
    
    
    $
    21,424
    
    
    $
    46,623
    
    
    $
    42,297Straight-line rent
    
    
    (177
    )
    
    
    748
    
    
    
    1,674
    
    
    
    2,612Interest and fee income
    
    
    6,541
    
    
    
    7,168
    
    
    
    14,475
    
    
    
    14,591Total revenues
    
    
    31,207
    
    
    
    29,340
    
    
    
    62,772
    
    
    
    59,500ExpensesReal estate depreciation and amortization
    
    
    5,905
    
    
    
    6,031
    
    
    
    12,169
    
    
    
    11,597Loan impairment charge
    
    
    
    
    
    
    
    
    
    
    12,000
    
    
    
    Property-related
    
    
    1,111
    
    
    
    1,176
    
    
    
    1,841
    
    
    
    2,039General and administrative
    
    
    9,464
    
    
    
    5,799
    
    
    
    15,633
    
    
    
    11,478Total operating expenses
    
    
    16,480
    
    
    
    13,006
    
    
    
    41,643
    
    
    
    25,114Operating income
    
    
    14,727
    
    
    
    16,334
    
    
    
    21,129
    
    
    
    34,386Other income (expense)Interest income
    
    
    29
    
    
    
    54
    
    
    
    13
    
    
    
    54Debt refinancing costs
    
    
    (6,214
    )
    
    
    
    
    
    
    (6,214
    )
    
    
    Interest expense
    
    
    (8,557
    )
    
    
    (9,431
    )
    
    
    (18,014
    )
    
    
    (18,894
    )Net other expense
    
    
    (14,742
    )
    
    
    (9,377
    )
    
    
    (24,215
    )
    
    
    (18,840
    )Income (loss) from continuing operations
    
    
    (15
    )
    
    
    6,957
    
    
    
    (3,086
    )
    
    
    15,546Income from discontinued operations
    
    
    6,247
    
    
    
    901
    
    
    
    6,505
    
    
    
    3,029Net income
    
    
    6,232
    
    
    
    7,858
    
    
    
    3,419
    
    
    
    18,575Net income attributable to
non-controlling interests
    
    
    (9
    )
    
    
    (12
    )
    
    
    (18
    )
    
    
    (19
    )Net income attributable to
MPT common stockholders
    
    $
    6,223
    
    
    $
    7,846
    
    
    $
    3,401
    
    
    $
    18,556Earnings per common share basic and
dilutedIncome (loss) from continuing operations
attributable to MPT common stockholders
    
    $
    
    
    
    $
    0.08
    
    
    $
    (0.04
    )
    
    $
    0.19Income from discontinued operations
attributable to MPT common stockholders
    
    
    0.06
    
    
    
    0.01
    
    
    
    0.07
    
    
    
    0.04Net income attributable to MPT common
stockholders
    
    $
    0.06
    
    
    $
    0.09
    
    
    $
    0.03
    
    
    $
    0.23Weighted average shares outstanding
    
    
    103,498
    
    
    
    78,616
    
    
    
    91,337
    
    
    
    77,524Dividends declared per common share
    
    $
    0.20
    
    
    $
    0.20
    
    
    $
    0.40
    
    
    $
    0.40
  4




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MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
 
 
 For the Six Months Ended June 30,2010
    
    
    2009Operating activitiesNet income
    
    $
    3,419
    
    
    $
    18,575Adjustments to reconcile net income to net cash provided by operating
activitiesDepreciation and amortization
    
    
    13,183
    
    
    
    13,151Straight-line rent revenue
    
    
    (1,674
    )
    
    
    (3,723
    )Share-based compensation
    
    
    3,884
    
    
    
    2,896Gain on sale of real estate
    
    
    (6,162
    )
    
    
    Straight-line rent write off/reserve
    
    
    
    
    
    
    1,111Loan impairment
    
    
    12,000
    
    
    
    Increase (decrease) in accounts payable and accrued liabilities
    
    
    (569
    )
    
    
    (1,401
    )Amortization and write-off of deferred financing costs and debt discount
    
    
    3,962
    
    
    
    2,753Premium paid
on extinguishment of debt
    
    
    3,490
    
    
    
    Other adjustments
    
    
    (4,583
    )
    
    
    (4,196
    )Net cash provided by operating activities
    
    
    26,950
    
    
    
    29,166Investing activitiesReal estate acquired
    
    
    (73,851
    )
    
    
    (499
    )Principal received on loans receivable
    
    
    45,882
    
    
    
    3,025Proceeds from sale of real estate
    
    
    75,000
    
    
    
    Investment in loans receivable
    
    
    (8,393
    )
    
    
    (5,681
    )Construction
in progress, equipment, and other
    
    
    (14,588
    )
    
    
    (1,204
    )Net cash
provided by (used in) investing activities
    
    
    24,050
    
    
    
    (4,359
    )Financing activitiesRevolving credit facilities, net
    
    
    (137,200
    )
    
    
    (68,800
    )Additions to debt
    
    
    148,500
    
    
    
    Payments of debt
    
    
    (204,096
    )
    
    
    (606
    )Distributions paid
    
    
    (32,435
    )
    
    
    (29,439
    )Sale of common stock
    
    
    288,470
    
    
    
    67,848Other financing activities
    
    
    (7,909
    )
    
    
    2,364Net cash provided by
(used in) by financing activities
    
    
    55,330
    
    
    
    (28,633
    )Increase (decrease) in cash and cash equivalents for period
    
    
    106,330
    
    
    
    (3,826
    )Cash and cash equivalents at beginning of period
    
    
    15,307
    
    
    
    11,748Cash and cash equivalents at end of period
    
    $
    121,637
    
    
    $
    7,922Interest paid
    
    
    15,916
    
    
    $
    17,095Supplemental schedule of non-cash financing activities:Distributions declared, unpaid
    
    
    22,326
    
    
    
    16,050Other non-cash financing activities
    
    
    
    
    
    
    5
  5




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MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
 
 
 1. Organization
    2. Summary of Significant Accounting Policies
 Unaudited Interim Condensed Consolidated Financial Statements
 Reclassifications




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##### Table of Contents



3. Real Estate and Lending Activities
 Acquisitions
   Land
    
    $
    6,264Building
    
    
    61,893Intangible lease assets  subject to amortization (weighted average useful life of 23.1
years)
    
    
    5,694Total
    
    $
    73,851
  Disposals
  Leasing Operations
       7




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Loans
  4. Debt
  As of June 30,
    
    
    As of December 31,2010
    
    
    2009Balance
    
    
    Interest Rate
    
    
    Balance
    
    
    Interest RateRevolving credit facilities
    
    $
    
    
    
    Variable
    
    $
    137,200
    
    
    VariableSenior unsecured notes  fixed
rate through July and October
2011 due July and October 2016
    
    
    125,000
    
    
    
    7.333%  7.871
    %
    
    
    125,000
    
    
    
    7.333%  7.871
    %Exchangeable senior notesPrincipal amount
    
    
    103,675
    
    
    
    6.125%  9.250
    %
    
    
    220,000
    
    
    
    6.125%  9.250
    %Unamortized discount
    
    
    (3,469
    )
    
    
    
    
    
    
    (8,265
    )100,206
    
    
    
    
    
    
    
    211,735Term loansPrincipal amount
    
    
    158,568
    
    
    Various
    
    
    102,743
    
    
    VariousUnamortized discount
    
    
    (1,472
    )
    
    
    
    
    157,096
    
    
    
    
    
    
    
    102,743$
    382,302
    
    
    
    
    
    
    $
    576,678
  2010
    
    $
    8832011
    
    
    31,6112012
    
    
    1,5002013
    
    
    83,5002014
    
    
    1,500Thereafter
    
    
    268,249Total
    
    $
    387,243
     8




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##### Table of Contents



5. Common Stock
     6. Stock Awards
  9




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##### Table of Contents



7. Fair Value of Financial Instruments
   June 30,
    
    
    December 31,2010
    
    
    2009Book
    
    
    Fair
    
    
    Book
    
    
    FairAsset (Liability)
    
    Value
    
    
    Value
    
    
    Value
    
    
    ValueInterest and Rent Receivables
    
    $
    27,844
    
    
    $
    19,945
    
    
    $
    19,845
    
    
    $
    16,712Loans
    
    
    257,345
    
    
    
    244,080
    
    
    
    311,006
    
    
    
    299,133Debt, net
    
    
    (382,302
    )
    
    
    (356,512
    )
    
    
    (576,678
    )
    
    
    (547,242
    )
 8. Discontinued Operations
     For the Three Months
    
    
    For the Six MonthsEnded June 30,
    
    
    Ended June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Revenues
    
    $
    563
    
    
    $
    2,161
    
    
    $
    2,371
    
    
    $
    4,321Gain on sale
    
    
    6,162
    
    
    
    
    
    
    
    6,178
    
    
    
    Net income
    
    
    6,247
    
    
    
    901
    
    
    
    6,505
    
    
    
    3,029Earnings per common share  diluted
    
    $
    0.06
    
    
    $
    0.01
    
    
    $
    0.07
    
    
    $
    0.04
 9. Earnings Per Share
  For the Three MonthsEnded June 30,2010
    
    
    2009Numerator:Income (loss) from continuing operations
    
    $
    (15
    )
    
    $
    6,957Non-controlling interests share in continuing operations
    
    
    (9
    )
    
    
    (9
    )Participating securities share in earnings
    
    
    (328
    )
    
    
    (380
    )Income (loss) from continuing operations, less participating securities
share in earnings
    
    
    (352
    )
    
    
    6,568Income from discontinued operations
    
    
    6,247
    
    
    
    901Non-controlling interests share in discontinued operations
    
    
    
    
    
    
    (3
    )Income from discontinued operations attributable to MPT common stockholders
    
    
    6,247
    
    
    
    898Net income, less participating securities share in earnings
    
    $
    5,895
    
    
    $
    7,466
 10




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##### Table of Contents



For the Six MonthsEnded June 30,2010
    
    
    2009Numerator:Income (loss) from continuing operations
    
    $
    (3,086
    )
    
    $
    15,546Non-controlling interests share in continuing operations
    
    
    (18
    )
    
    
    (18
    )Participating securities share in earnings
    
    
    (679
    )
    
    
    (770
    )Income (loss) from continuing operations, less participating securities share in earnings
    
    
    (3,783
    )
    
    
    14,758Income from discontinued operations
    
    
    6,505
    
    
    
    3,029Non-controlling interests share in discontinued operations
    
    
    
    
    
    
    (1
    )Income from discontinued operations attributable to MPT common stockholders
    
    
    6,505
    
    
    
    3,028Net income, less participating securities share in earnings
    
    $
    2,722
    
    
    $
    17,786
  10. Contingencies
     11. Comprehensive Income
  For the Three MonthsEnded June 30,2010
    
    
    2009Net income
    
    $
    6,232
    
    
    $
    7,858Other comprehensive income:Unrealized gain (loss) on interest rate swap
    
    
    (3,160
    )
    
    
    Total comprehensive income
    
    
    3,072
    
    
    
    7,858Comprehensive income attributable to non-controlling interests
    
    
    (9
    )
    
    
    (12
    )Comprehensive income attributable to MPT common stockholders
    
    $
    3,063
    
    
    $
    7,846
 For the Six MonthsEnded June 30,2010
    
    
    2009Net income
    
    $
    3,419
    
    
    $
    18,575Other comprehensive income:Unrealized gain (loss) on interest rate swap
    
    
    (3,160
    )
    
    
    Total comprehensive income
    
    
    259
    
    
    
    18,575Comprehensive income attributable to non-controlling interests
    
    
    (18
    )
    
    
    (19
    )Comprehensive income attributable to MPT common stockholders
    
    $
    241
    
    
    $
    18,556
 11




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##### Table of Contents



12. Income Taxes
  13. Executive Severance
  
 Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
  Forward-Looking Statements.
  
    
    national and local economic, business, real estate and other market conditions;
    
    the competitive environment in which we operate;
    
    the execution of our business plan;
    
    financing risks;
    
    acquisition and development risks;
    
    potential environmental contingencies, and other liabilities;
    
    other factors affecting real estate industry generally or the healthcare real estate industry in particular;
    
    our ability to maintain our status as a REIT for federal and state income tax purposes;
    
    our ability to attract and retain qualified personnel;
    
    federal and state healthcare regulatory requirements; and
    
    the impact of the recent credit crisis and global economic slowdown, which has had and may continue to have
a negative effect on the following, among other things:
 
    
    the financial condition of our tenants, our lenders,
counterparties to our capped call transactions and
institutions that hold our cash balances, which may expose
us to increased risks of default by these parties;
    
    our ability to obtain debt financing on attractive terms
or at all, which may adversely impact our ability to
pursue acquisition and development opportunities and our
future interest expense; and
    
    the value of our real estate assets, which may limit our
ability to dispose of assets at attractive prices or
obtain or maintain debt financing secured by our
properties or on an unsecured basis.
 12




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##### Table of Contents



Key Factors that May Affect Our Operations
   
    
    the historical and prospective operating margins (measured by a
tenants earnings before interest, taxes, depreciation, amortization
and facility rent) of each tenant or borrower and at each facility;
    
    the ratio of our tenants and borrowers operating earnings both to
facility rent and to facility rent plus other fixed costs, including
debt costs;
    
    trends in the source of our tenants or borrowers revenue, including
the relative mix of Medicare, Medicaid/MediCal, managed care,
commercial insurance, and private pay patients; and
    
    the effect of evolving healthcare regulations on our tenants and
borrowers profitability.
  
    
    trends in the cost and availability of capital, including market
interest rates, that our prospective tenants may use for their real
estate assets instead of financing their real estate assets through
lease structures;
    
    changes in healthcare regulations that may limit the opportunities for
physicians to participate in the ownership of healthcare providers and
healthcare real estate;
    
    reductions in reimbursements from Medicare, state healthcare programs,
and commercial insurance providers that may reduce our tenants
profitability and our lease rates;
    
    competition from other financing sources; and
    
    the ability of our tenants and borrowers to access funds in the credit
markets.
 CRITICAL ACCOUNTING POLICIES
  Overview
    13




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Revenue by property type:
 For the Three
    
    
    
    
    
    
    For the ThreeMonths Ended
    
    
    
    
    
    
    Months EndedJune 30,
    
    
    % of
    
    
    June 30,
    
    
    % of2010
    
    
    Total
    
    
    2009
    
    
    TotalGeneral Acute Care Hospitals
    
    $
    21,024
    
    
    
    67.3
    %
    
    $
    19,908
    
    
    
    67.8
    %Long-term Acute Care Hospitals
    
    
    6,643
    
    
    
    21.3
    %
    
    
    5,505
    
    
    
    18.8
    %Rehabilitation Hospitals
    
    
    2,776
    
    
    
    8.9
    %
    
    
    2,539
    
    
    
    8.6
    %Medical Office Buildings
    
    
    426
    
    
    
    1.4
    %
    
    
    810
    
    
    
    2.8
    %Wellness Centers
    
    
    338
    
    
    
    1.1
    %
    
    
    578
    
    
    
    2.0
    %Total revenue
    
    $
    31,207
    
    
    
    100.0
    %
    
    $
    29,340
    
    
    
    100.0
    %
 For the Six
    
    
    
    
    
    
    For the SixMonths Ended
    
    
    
    
    
    
    Months EndedJune 30,
    
    
    % of
    
    
    June 30,
    
    
    % of2010
    
    
    Total
    
    
    2009
    
    
    TotalGeneral Acute Care Hospitals
    
    $
    42,533
    
    
    
    67.8
    %
    
    $
    39,971
    
    
    
    67.2
    %Long-term Acute Care Hospitals
    
    
    13,128
    
    
    
    20.9
    %
    
    
    12,082
    
    
    
    20.3
    %Rehabilitation Hospitals
    
    
    5,583
    
    
    
    8.9
    %
    
    
    5,079
    
    
    
    8.5
    %Medical Office Buildings
    
    
    853
    
    
    
    1.3
    %
    
    
    1,226
    
    
    
    2.1
    %Wellness Centers
    
    
    675
    
    
    
    1.1
    %
    
    
    1,142
    
    
    
    1.9
    %Total revenue
    
    $
    62,772
    
    
    
    100.0
    %
    
    $
    59,500
    
    
    
    100.0
    %
   Results of Operations
 Three months Ended June 30, 2010 Compared to June 30, 2009
   Year over% of
    
    
    
    
    
    
    % of
    
    
    Year2010
    
    
    Total
    
    
    2009
    
    
    Total
    
    
    ChangeBase rents
    
    $
    23,758
    
    
    
    76.1
    %
    
    $
    20,830
    
    
    
    71.0
    %
    
    
    14.1
    %Straight-line rents
    
    
    (177
    )
    
    
    -0.5
    %
    
    
    748
    
    
    
    2.5
    %
    
    
    -124
    %Percentage rents
    
    
    1,085
    
    
    
    3.5
    %
    
    
    594
    
    
    
    2.0
    %
    
    
    82.7
    %Fee income
    
    
    132
    
    
    
    0.4
    %
    
    
    48
    
    
    
    0.2
    %
    
    
    175
    %Interest from loans
    
    
    6,409
    
    
    
    20.5
    %
    
    
    7,120
    
    
    
    24.3
    %
    
    
    -10.0
    %Total revenue
    
    $
    31,207
    
    
    
    100.0
    %
    
    $
    29,340
    
    
    
    100.0
    %
    
    
    6.4
    %
      14




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##### Table of Contents



Six Months Ended June 30, 2010 Compared to June 30, 2009
   Year over% of
    
    
    
    
    
    
    % of
    
    
    Year2010
    
    
    Total
    
    
    2009
    
    
    Total
    
    
    ChangeBase rents
    
    $
    45,009
    
    
    
    71.7
    %
    
    $
    41,467
    
    
    
    69.7
    %
    
    
    8.5
    %Straight-line rents
    
    
    1,674
    
    
    
    2.6
    %
    
    
    2,612
    
    
    
    4.4
    %
    
    
    -35.9
    %Percentage rents
    
    
    1,614
    
    
    
    2.6
    %
    
    
    830
    
    
    
    1.4
    %
    
    
    94.5
    %Fee income
    
    
    237
    
    
    
    0.4
    %
    
    
    176
    
    
    
    0.3
    %
    
    
    34.7
    %Interest from loans
    
    
    14,238
    
    
    
    22.7
    %
    
    
    14,415
    
    
    
    24.2
    %
    
    
    -1.2
    %Total revenue
    
    $
    62,772
    
    
    
    100.0
    %
    
    $
    59,500
    
    
    
    100.0
    %
    
    
    5.5
    %
         LIQUIDITY AND CAPITAL RESOURCES
    15




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##### Table of Contents



Short-term
Liquidity Requirements:
 Long-term
Liquidity Requirements:
 Distribution Policy
   Distribution perDeclaration Date
    
    Record Date
    
    Date of Distribution
    
    ShareMay 20, 2010
    
    June 17, 2010
    
    July 15, 2010
    
    $
    0.20February 18, 2010
    
    March 18, 2010
    
    April 14, 2010
    
    $
    0.20November 19, 2009
    
    December 17, 2009
    
    January 14, 2010
    
    $
    0.20August 20, 2009
    
    September 17, 2009
    
    October 15, 2009
    
    $
    0.20May 21, 2009
    
    June 11, 2009
    
    July 14, 2009
    
    $
    0.20February 24, 2009
    
    March 19, 2009
    
    April 9, 2009
    
    $
    0.20December 4, 2008
    
    December 23, 2008
    
    January 22, 2009
    
    $
    0.20August 21, 2008
    
    September 18, 2008
    
    October 16, 2008
    
    $
    0.27
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
   Interest Rate Sensitivity
    Share Price Sensitivity
     16




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##### Table of Contents



Item 4. Controls and Procedures.
    
 PART II  OTHER INFORMATION
 
 Item 1. Legal Proceedings.
    
 Item 1A. Risk Factors.
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
    
 Item 3. Defaults Upon Senior Securities.
  
 Item 4. (Removed and Reserved).
 
 Item 5. Other Information.
   17




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##### Table of Contents



Item 6. Exhibits.
  ExhibitNumber
    
    Description10.1.1
    
    Revolving Credit and Term Loan
Agreement, dated as of May 17, 2010, among Medical Properties Trust,
Inc, MPT Operating Partnership, L.P., KeyBank National Association and Royal Bank of Canada as syndication agents,
and JPMorgan Chase, N.A., as administrative agent (Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of Medical Properties Trust, Inc., filed on May 20, 2010.)10.1.2
    
    Separation Agreement, dated June 11, 2010, between Medical Properties Trust, Inc. and Michael G. Stewart (Incorporated by
reference to Exhibit 10.1 to the Current Report on Form 8-K of Medical Properties Trust, Inc., filed on June 11, 2010.)31.1
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.31.2
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.32
    
    Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) under the
Securities Exchange Act of 1934 and 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.99.1
    
    Consolidated Financial Statements of Prime
Healthcare Services, Inc. as of March 31,
2010. Since affiliates of Prime Healthcare
Services, Inc. lease more than 20% of our
total assets under triple net leases, the
financial status of Prime may be considered
relevant to investors. Primes most recently
available financial statements (unaudited, as
of and for the period ended March 31, 2010)
are attached as exhibit 99.1 to this
Quarterly Report on Form 10-Q. We have not
participated in the preparation of Primes
financial statements nor do we have the right
to dictate the form of any financial
statements provided to us by Prime.
 18




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##### Table of Contents



SIGNATURE
  MEDICAL PROPERTIES TRUST, INC.By:
    /s/ R. Steven HamnerR. Steven HamnerExecutive Vice President and Chief Financial Officer
(On behalf of the Registrant and as the Registrants Principal
Financial and Accounting Officer)  19




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##### Table of Contents



ExhibitNumber
    
    Description10.1.1
    
    Revolving Credit and Term Loan
Agreement, dated as of May 17, 2010, among Medical Properties Trust,
Inc, MPT Operating Partnership, L.P., KeyBank National Association and Royal Bank of Canada as syndication agents,
and JPMorgan Chase, N.A., as administrative agent (Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of Medical Properties Trust, Inc., filed on May 20, 2010.)10.1.2
    
    Separation Agreement, dated June 11, 2010, between Medical Properties Trust, Inc. and Michael G. Stewart (Incorporated by
reference to Exhibit 10.1 to the Current Report on Form 8-K of Medical Properties Trust, Inc., filed on June 11, 2010.)31.1
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 193431.2
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 193432
    
    Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) under the
Securities Exchange Act of 1934 and 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 200299.1
    
    Consolidated Financial Statements of Prime Healthcare Services, Inc. as of March 31, 2010. Since affiliates
of Prime Healthcare Services, Inc. lease more than 20% of our total assets under triple net leases, the
financial status of Prime may be considered relevant to investors. Primes most recently available financial
statements (unaudited, as of and for the period ended March 31, 2010) are attached as exhibit 99.1 to this
Quarterly Report on Form 10-Q. We have not participated in the preparation of Primes financial statements
nor do we have the right to dictate the form of any financial statements provided to us by Prime.
 20