Medical Properties Trust Inc., a real estate investment trust, filed an amended current report on Form 8-K/A with the SEC on May 9, 2024, updating its financial results for the first quarter ended March 31, 2024. The amendment was necessitated by a subsequent event that provided additional evidence about conditions existing as of the end of the quarter, specifically related to its investment in PHP Holdings, part of Prospect Medical Holdings, Inc. Initially, the company had reported a $60 million decline in the estimated fair value of this investment. However, after receiving updated indications of interest from prospective bidders and consulting with a third-party appraiser, Medical Properties Trust recognized the need for an additional $140 million unfavorable fair value adjustment, bringing the total investment...Show More

Medical Properties Trust Inc., a real estate investment trust, filed an amended current report on Form 8-K/A with the SEC on May 9, 2024, updating its financial results for the first quarter ended March 31, 2024. The amendment was necessitated by a subsequent event that provided additional evidence about conditions existing as of the end of the quarter, specifically related to its investment in PHP Holdings, part of Prospect Medical Holdings, Inc. Initially, the company had reported a $60 million decline in the estimated fair value of this investment. However, after receiving updated indications of interest from prospective bidders and consulting with a third-party appraiser, Medical Properties Trust recognized the need for an additional $140 million unfavorable fair value adjustment, bringing the total investment value to approximately $500 million. This subsequent event was recognized in accordance with FASB ASC 855 and resulted in the company updating its financial results to reflect the new information. The updated financial statements and supplemental information were included in the Quarterly Report filed on May 29, 2024. The company's management has discussed these changes with its independent accounting firm, PricewaterhouseCoopers LLP, as well as with its Board of Directors and Audit Committee.