Medical Properties Trust, Inc. (MPT or the Company) (NYSE: MPW), today announced that it has completed the sale of North Cypress Medical Center, a 139-bed acute care hospital located in Cypress, Texas near Houston, to Hospital Corporation of America (HCA). The $148 million sale to HCA resulted in an approximate $100 million gain for MPT and an unlevered internal rate of return of more than 17% since the completion of development in 2007. The company expects to use proceeds to make additional investments in U.S. hospital real estate and for other corporate purposes.
North Cypress Medical Center was founded by local physicians who wanted to create a sophisticated, upscale experience for patients in the Houston community, said Edward K. Aldag, Jr., MPTs Chairman, President and CEO. We were pleased to develop this magnificent facility for Dr. Robert Behar, the hospitals founder, Chairman and CEO, beginning in 2005, the same year that Medical Properties Trust became a publicly-traded company.
Through investments such as North Cypress MPW has generated shareholder returns far exceeding benchmark REIT indices and also the S&P 500 over the past ten years and since our IPO. This transaction again indicates the outstanding value that exists in MPTs portfolio, added Aldag.
About Medical Properties Trust, Inc. Medical Properties Trust, Inc. is a self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. MPTs financing model helps facilitate acquisitions and recapitalizations and allows operators of hospitals and other healthcare facilities to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. Facilities include acute care hospitals, inpatient rehabilitation hospitals, long-term acute care hospitals, and other medical and surgical facilities. For more information, please visit the Companys website at www.medicalpropertiestrust.com.
The statements in this press release that are forward looking are based on current expectations and actual results or future events may differ materially. Words such as expects, believes, anticipates, intends, will, should and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results of the Company or future events to differ materially from those expressed in or underlying such forward-looking statements, including without limitation: the satisfaction of all conditions to, and the timely closing (if at all) of pending transactions; the amount of acquisitions of healthcare real estate, if any; results from potential sales and joint venture arrangements, if any; capital markets conditions; estimated leverage metrics; the repayment of debt arrangements; statements concerning the additional income to the Company as a result of ownership interests in certain hospital operations and the timing of such income; the payment of future dividends, if any; completion of additional debt arrangements, and additional investments; national and international economic, business, real estate and other market conditions; the competitive environment in which the Company operates; the execution of the Companys business plan; financing risks; the Companys ability to maintain its status as a REIT for income tax purposes; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally or healthcare real estate in particular. For further discussion of the factors that could affect outcomes, please refer to the Risk factors section of the Companys Annual Report on Form 10-K for the year ended December 31, 2017 and as updated by the Companys subsequently filed Quarterly Reports on Form 10-Q and other SEC filings. Except as otherwise required by the federal securities laws, the Company undertakes no obligation to update the information in this press release.