中文AV

Transaction to Generate Proceeds to MPT of $175 Million for an Approximate 13% Unlevered IRR on 2012 Investment of $96 Million

BIRMINGHAM, AL 鈥� MAY 30, 2018 鈥� Medical Properties Trust, Inc. (鈥淢PT鈥� or the 鈥淐ompany鈥�) (NYSE: MPW) announced today that it has entered into definitive agreements with affiliates of 中文AV (鈥淥EP鈥�) to sell its interest in Ernest Health, Inc. (鈥淓rnest鈥�). Certain members of Ernest management also agreed to sell the remaining Ernest interest to OEP. Upon closing MPT expects its portion of proceeds to be $175 million and to generate an approximate 13% unlevered internal rate of return on its original $96 million investment.

鈥淥ne Equity鈥檚 investment in and commitment to Ernest validates the investment in Ernest we made more than six years ago,鈥� said Edward K. Aldag, Jr., MPT鈥檚 Chairman, President, and Chief Executive Officer. 鈥淚n addition to the high IRR from our equity investment, we have created for our shareholders an outstanding real estate portfolio of post-acute hospitals that will continue to generate strong returns. Our investment truly could not have worked out better for our shareholders.鈥�

MPT will continue to own the real estate interests of 25 post-acute hospitals operated by Ernest with an aggregate investment of approximately $500 million, including mortgage loans aggregating $115 million secured by four hospitals. As part of the agreements, MPT has granted Ernest an option to prepay the mortgage debt without penalty, and Ernest has granted to MPT certain preferential rights to future real estate acquisitions.

鈥淲e鈥檙e excited to be investing in Ernest Health. This transaction is the result of years of work in the post-acute healthcare services market including prior opportunities in long term acute care and inpatient rehabilitation facilities,鈥� said Greg Belinfanti, Senior Managing Director at OEP. 鈥淭he existing Ernest management team, with MPT鈥檚 support, has built a tremendous company driven by a commitment to clinical excellence and demonstrated positive patient outcomes. We plan to build on this foundation and look forward to working with Ernest and MPT leadership to accelerate Ernest鈥檚 already strong momentum.鈥�

鈥淐onsistent with OEP鈥檚 investment strategy, we intend to support Ernest with capital to pursue further acquisition, growth and development opportunities,鈥� said Brad Coppens, Managing Director at OEP. 鈥淓rnest has spent over 14 years building a reputation for clinical excellence and we hope to extend that reputation in partnership with health systems across the U.S.鈥�

Proceeds will be used to reduce borrowings under MPT鈥檚 revolving credit facility. Closing of the transaction is subject to customary conditions, including certain government approvals and is expected during the second half of 2018.

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. MPT鈥檚 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 Company鈥檚 website at .

About 中文AV
OEP is a middle-market private equity firm with approximately $7 billion of assets under management focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 170 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, and Frankfurt. For more information, please visit .