Medical Properties Trust Releases Letter To Shareholders Regarding Findings Of Independent, Forensic Investigation Into Short-seller Allegations; Says Board Continues To Stand Firmly Behind Its Management Team

The text of the letter included:

Over much of the past two years, Medical Properties Trust has been the target of considerable scrutiny from short-selling hedge funds as well as certain media outlets.

In response to certain claims asserted by Viceroy Research, the Board's Audit Committee engaged Wachtell Lipton in early 2023 to conduct an independent investigation into the short-seller allegations, including with respect to MPT transactions involving Steward Healthcare beginning in 2016.

Wachtell Lipton in turn retained a leading global consulting firm to assist with financial forensics as part of this investigation. No limitations or restrictions were placed on the scope of the investigation and management cooperation with the investigation was exemplary.

The key findings from the investigation are as follows:

1. The investigation identified no evidence that MPT gratuitously overpays its operator-tenants for real estate.
2. The investigation identified no evidence of improper round-tripping.
3. The investigation found no evidence of improper recognition of "uncollectable" rent through GAAP-mandated straight-line revenue recognition. The investigation also found no evidence to substantiate the allegation that MPT was required to consolidate Steward's financial results.
4. The investigation concluded that neither Manolete Health nor MPT has an ownership interest in any Malta property or hospital.
5. The investigation yielded no evidence that management manipulated acquisitions or other metrics to meet compensation targets.
6. The investigation yielded no evidence of concerns regarding management integrity.