Medical Properties Says Operations in Jeopardy

Medical Properties Inc. posted a $945,000 first-quarter loss and said it will not be able to continue operating if it can’t restructure its lease agreements and sell its hospital and adjacent medical office building in La Mirada.

The Encino-based real estate investment trust said it did not receive its quarterly rent payment of $1.3 million from Nu-Med Inc., an affiliated company also based in Encino that operates the La Mirada facilities.

Last week, Nu-Med announced that it would temporarily close the 145-bed Medical Center of La Mirada. It said the closure of the hospital, which has suffered continued losses, would allow it to reorganize its medical staff. During the closure, it said, the hospital’s license will be voluntarily suspended.

Medical Properties’ loss in the quarter ended March 31 came on revenue of just $8,000, which consisted entirely of interest income. A year earlier, the company earned $428,000 on $1.33 million in revenue.

The trust also said it filed a proposed plan with the Securities and Exchange Commission to reduce the rent paid by Nu-Med for Valley Community Hospital, an acute-care facility in Oregon, and to accept a $4.38-million payment from Nu-Med to terminate the La Mirada leases. It also said it is seeking shareholder approval to sell the La Mirada buildings for about $10 million.

Medical Properties said it is currently negotiating the sale of the properties, but did not identify the potential buyer.