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All amounts are quarterly amounts in 1,000's taken from the Q323 10-Q.
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Total Leverage Ratio(Total Indebtedness - Cash) / Total Asset Value
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Total Leverage Ratio covenant
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The Total Leverage Ratio may not remain above60.00%for 4 consecutive fiscal quarters
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Total indebtedness $ 10,204,130
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Less: Cash $ (340,058)
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Total indebtedness net of Cash $ 9,864,072
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Real estate assets - at cost (undepreciated) $ 14,868,393
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Investments in unconsolidated real estate joint ventures $ 1,461,725
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Investments in unconsolidated operating entities $ 1,843,847
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Total assets $ 18,173,965
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MPT's actual Total Leverage Ratio54.28%
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The amount of additional debt that MPT would need to take on to violate the Total Leverage Ratio covenant. $ 1,040,307
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Alternatively, the amount of additonal asset impairments MPT would need to recognize to violate the Total Leverage Ratio covenant $ 1,733,845
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Fixed Charge Coverage RatioTotal EBITDA / Total Fixed Charges
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Fixed Charge Coverage Ratio covenant
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The Fixed Charge Coverage Ratio may not remain below1.50for 4 consecutive fiscal quarters
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EBITDA
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EBT $ 126,953
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Real estate depreciation and amortization $ 77,802
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Interest $ 106,709
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EBITDA $ 311,464
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Fixed charges
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Interest $ 106,709
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Fixed charges $ 106,709
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MPT's actual fixed charge coverage ratio2.92
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The amount to which quarterly fixed charges would need to increase in order for MPT to violate the Fixed Charge Coverage Ratio covenant $ 207,643
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The amount by which quarterly fixed charges would need to increase in order for MPT to violate the Fixed Charge Coverage Ratio covenant $ 100,934
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The amount by which annual fixed charges would need to increase in order for MPT to violate the Fixed Charge Coverage Ratio covenant $ 403,735
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The amount to which quarterly EBITDA would need to decrease in order for MPT to violate the Fixed Charge Coverage Ratio covenant $ 160,064
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The amount by which quarterly EBITDA would need to decrease in order for MPT to violate the Fixed Charge Coverage Ratio covenant $ 151,401
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The amount by which annual EBITDA would need to decrease in order for MPT to violate the Fixed Charge Coverage Ratio covenant $ 605,602
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Consolidated Adjusted Net Worth
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Consolidated Adjusted Net Worth covenant
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Consolidated Tangible Net Worth may not fall below $ 6,685,090
Note: no common stock was issued in 2022 or the first 9 months of 2023
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Shareholders' equity at end of Q323 $ 8,285,417
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Less: intangible assets
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Lease intangibles
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As of 12/31/2022 $ 1,394,471
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Acquired in first 9 months of 2023 $ 16,305
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Total lease intangibles $ 1,410,776
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Consolidated Tangible Net Worth $ 6,874,641
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Amount by which MPT's Consolidated Tangible Net Worth
exceeds minimum		 $ 189,551
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MPT has already said it is going to write off $350M in rent receivables and that it is likely to take additional impairments on Steward real estate. No way it isn't in violation of the CANW covenant at 12/31/2023.
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The question is what will happen. The lenders will likely grant some kind of waiver.
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