MEDICAL PROPERTIES REPORTS RESULTS
MEDICAL PROPERTIES REPORTS RESULTS ENCINO, Calif., March 30 /PRNewswire/ -- Medical Properties Inc.
(AMEX: MPP) today reported a net loss of $18,937,000 or $8.03 per share, for the fourth quarter ended Dec. 31, 1991 compared to net income of $423,000, or $.18 per share for the comparable prior year period. Revenues, primarily from rental properties were $19,000 for the current fourth quarter compared with $1,342,000 for the same quarter a year ago. The substantial loss for the quarter ended Dec. 31, 1991, was due to the write down of $18,000,000 from the net book value of the company's real estate assets to their estimated realizable value and also not receiving any rent payments from its lessees or guarantor for the fourth quarter ended Dec. 31, 1991. (In September 1986, the company's real estate properties were appraised for $42,000,000. Based on that amount, the various leases provided for a total of minimum annual rent of $5,250,000 or 12 1/2 percent of the appraised value. As long as the company received such minimum annual rent, a write down in value of its real estate properties value was not warranted.) The quarterly rent payment of approximately $1,312,000 was not paid due to the financial conditions and results of the lessees and that of their guarantor.
For the year ended Dec. 31, 1991, net loss was $17,642,000, or $7.48 per share, compared with net income of $1,691,000, or $.71 per share, for the prior year. Revenues, primarily from rental properties, were $4,013,000 for 1991 compared with $5,349,000 for 1990. The decline in net income and lower revenues was due to the same reason as for the fourth quarter as stated above. As previously announced, Medical Properties extended the standstill agreement with all three lessees as well as the guarantor of the leases to June 30, 1992. During this period, the company will not declare a default under the leases from any lessee or the guarantor's failure to make any rent or other payments thereunder. The standstill agreement also provides for three monthly rent payments of $60,000 commencing April 1, 1992, for its Oregon property and is conditioned upon obtaining the consent of its secured lender. In March 1992, Medical Properties commenced negotiating with a third party for the possible sale of the La Mirada facilities, which sale will be conditioned upon the approval of Medical Properties' shareholders, as well as the consent of its secured lender. Medical Properties did not receive any rent payments for the quarter ended Dec. 31, 1991, and will also not receive any rent payments for the quarter ending March 31, 1992. Unless certain restructuring of the leases or a sale of the La Mirada facilities is completed in the near future, Medical Properties will not be able to pay its debt and continue its operations. Medical Properties is a real estate investment trust engaged in investing in income producing health care related facilities. MEDICAL PROPERTIES INC. Statement of Earnings Quarter Ended Year Ended Dec. 31, Dec. 31, 1991 1990 1991 1990 (unaudited) Revenues: Rental income- related parties $0 $1,312,000 $3,943,000 $5,275,000 Interest income 19,000 30,000 70,000 74,000 Total 19,000 1,342,000 4,013,000 5,349,000 Expenses: Depreciation and amortization 307,000 308,000 1,232,000 1,232,000 Interest 423,000 423,000 1,679,000 1,680,000 Advisory fees - related party 0 63,000 63,000 252,000 Insurance 48,000 42,000 185,000 153,000 Property Valuation Allowance 18,000,000 0 18,000,000 0 Other 178,000 83,000 496,000 341,000 Total 18,956,000 919,000 21,655,000 3,658,000 Net income (loss) ($18,937,000) $423,000 ($17,642,000) $1,691,000 Net income (loss) per share ($8.03) $0.18 ($7.48) $0.71 Weighted average shares outstanding 2,357,900 2,365,397 2,358,104 2,368,092 -0- 3/30/92 /CONTACT: William Hartauer, president of Medical Properties, 818-902-2270/ (MPP) CO: Medical Properties Inc. ST: California IN: HEA SU: ERN
CH-AL -- LA007 -- 2854 03/30/92 11:40 EST
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|Date:||Mar 30, 1992|
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