Medical Properties Loses $18.9 Million in Quarter

Medical Properties Inc., an Encino real estate investment trust that owns hospitals and other medical facilities, reported an $18.9 million loss in the fourth quarter that ended Dec. 31, while its revenue plunged by 99%.

The company, which wrote down $18 million of its real estate assets, said it received no rental payments during 1991's final quarter. A total of $1.3 million in rent was due during the quarter from Nu-Med Inc., an Encino hospital operator that leases Medical Properties' three medical facilities.

Medical Properties previously said it extended its standstill agreement with Nu-Med, under which it will not declare Nu-Med in default if no further rent payments are made until June 30. Medical Properties has also said it is negotiating the sale of its La Mirada medical facility, which it leases to Nu-Med.

Medical Properties' fourth quarter loss was in contrast with a year-earlier profit of $423,000. Its revenue was just $19,000, down from $1.34 million a year before.

For all of 1991, Medical Properties lost $17.6 million, compared to a $1.69 million profit in 1990. Revenue fell 25% to $4.01 million from $5.35 million.

Copyright © 2019, Los Angeles Times
EDITION: California | U.S. & World
59°