Medical Properties Trust, Inc. (MPW): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the engine room of Medical Properties Trust, Inc., especially now that managing debt in this environment is front and center. Honestly, their blueprint is built on acquiring and developing net-leased hospital facilities, securing long-term income from operators across 388 global properties, which pulled in $934 million in rent over the last twelve months ending September 2025. Still, the pressure is real: they face an estimated $540 million in interest expense for 2025 while actively restructuring troubled tenants to protect their $14.9 billion asset base. This canvas distills exactly how they structure these deals, what keeps the lights on, and where the near-term risks lie for this healthcare REIT; check out the nine blocks below to see the full strategy.

Medical Properties Trust, Inc. (MPW) - Canvas Business Model: Key Partnerships

You're looking at the network of relationships Medical Properties Trust, Inc. (MPW) relies on to keep its real estate assets generating revenue. These aren't just vendors; these are the operators who run the hospitals and the financial institutions that fund MPW's global strategy. It's a complex web, and the stability of the rent roll depends on these key players performing.

As of late 2025, the sheer scale of MPW's operator base is a key metric. The portfolio is leased to or mortgaged by 51 hospital operating companies across nine countries as of September 30, 2025. This diversification across operators helps mitigate risk, though the focus on re-tenanting remains critical.

The company continues to actively manage its operator roster, especially following past transitions. A significant recent example involves the lease agreement with NOR Healthcare Systems Corp., which took over Prospect Medical Group's California operations. This deal covers six facilities and sets an initial annualized rent of $45 million. To facilitate this, MPW committed up to $60 million for required seismic improvements, which is expected to increase the lease base and result in additional rent. The expected additional annual cash rent from these specific facilities is $45 million, which contributes to the overall projection of more than $1 billion of pro forma annualized cash rent expected by the fourth quarter of 2026.

Strategic joint ventures are another pillar of the partnership structure, often used to finance large portfolio acquisitions or manage specific geographic assets. Consider the Infracore joint venture in Switzerland. In April 2025, MPW increased its equity investment in this venture by approximately CHF 50 million, which included a CHF 25 million short-term loan, to help finance the acquisition of a Swiss general acute facility. Historically, MPW's initial investment in Infracore was a 46% stake for $236.5 million, valuing the underlying real estate at almost $900 million.

The financial partners are essential for maintaining liquidity and optimizing the balance sheet, especially given the capital-intensive nature of this business. In early 2025, Medical Properties Trust, Inc. executed a major debt raise to refinance near-term maturities. This involved a private offering of senior secured notes totaling $2.5 billion. Specifically, this consisted of $1.5 billion in USD notes and €1.0 billion in Euro notes, both due in 2032. The USD notes carried an 8.500% coupon, and the Euro notes had a 7.000% coupon, leading to a blended coupon rate of 7.885%. These notes are secured by first-priority liens on equity interests in subsidiaries owning 169 properties across the U.S., the U.K., and Germany. Furthermore, subsequent to the third quarter of 2025, the company announced a $150 Million Strategic Common Stock Repurchase Program, and there was an August follow-on equity offering of US$500 million.

Here is a snapshot of the key financial relationships and scale as of late 2025:

The relationship with lenders and capital markets is clearly transactional and focused on extending the maturity profile. The $2.5 billion secured notes offering, for instance, was explicitly intended to redeem existing senior notes due in 2025 and 2026. The company's ability to secure this large financing, even with coupon rates like 8.500% on the USD tranche, shows continued access to deep institutional demand. I'd say that maintaining the pipeline of new, quality operators like NOR Healthcare Systems Corp. is the most important operational partnership right now; that's where the recurring cash flow comes from. Finance: draft the Q4 2025 covenant compliance certificate by next Tuesday.

Medical Properties Trust, Inc. (MPW) - Canvas Business Model: Key Activities

You're looking at the core actions Medical Properties Trust, Inc. (MPW) is taking right now to manage its portfolio and balance sheet, which is definitely a focus area given the recent market environment.

Acquiring and developing net-leased hospital facilities

The fundamental activity remains acquiring and developing these specialized facilities, though the focus in late 2025 seems to be on managing the existing scale while resolving tenant issues. As of September 30, 2025, Medical Properties Trust, Inc. had total assets of approximately $14.9 billion. The portfolio at that date included 388 properties and roughly 39,000 licensed beds, leased to or mortgaged by 51 hospital operating companies across nine countries. This scale is consistent with the Q2 2025 figure where total assets stood at approximately $15.2 billion, comprising 392 properties and 39,000 licensed beds leased to 53 operating companies.

Securing long-term, fixed-rate debt financing

Securing capital is a constant key activity, and Medical Properties Trust, Inc. executed significant financing events in 2025 to bolster liquidity. A major example is the June 2025 refinancing of a joint venture debt. The 50/50 joint venture with Praemia REIM secured a €702.5 million non-recourse, 10-year non-amortizing debt at a 5.1% fixed rate, which replaced a maturing €655 million loan from 2018. This followed a major capital raise earlier in the year, with the company completing a $2.5 billion secured notes financing in the first quarter of 2025.

Here's a snapshot of recent financing activity:

Active portfolio restructuring and re-tenanting of troubled assets

A significant portion of current activity involves resolving issues with underperforming operators. Net loss for the third quarter ended September 30, 2025, included approximately $82 million in impairment charges, largely tied to Prospect Medical Group bankruptcy transactions. The company is actively transitioning leases; for example, cash rental income from new tenants surged to $11.0 million in Q2 2025, up from $3.4 million in Q1 2025, with Q3 scheduled collections approximating $17 million. The company expects pro rata annualized cash rent from the current portfolio to exceed $1 billion by the end of 2026.

Key restructuring milestones include:

• Settlement with Prospect and Yale expected to yield proceeds exceeding the current DIP loan balance of approximately $100 million.
• Agreement in principle for a new lease with NOR Healthcare Systems Corp. in California, expected to generate stabilized annual cash rent of $45 million.
• Q3 2025 cash collections were $16 million, with Q4 2025 collections anticipated to approximate $22 million.

Managing long-term triple-net master leases

The core of the business model involves managing these long-term contracts, which provide predictable cash flow. The German portfolio, refinanced in June 2025, is operated by MEDIAN, and the annual cash rent from that joint venture has increased by nearly €20 million since its 2018 formation. Operational performance across asset types shows strength in some areas; general acute care operators reported a year-over-year increase in EBITDARM of more than $200 million in Q3 2025. Post-acute operators reported a $50 million EBITDARM increase versus the same quarter last year.

Strategic asset sales for debt reduction and liquidity

Divestitures are a key activity for generating cash to manage debt maturities and improve liquidity. In August 2025, Medical Properties Trust, Inc. sold two facilities in Arizona with nominal annual cash rent for approximately $50 million. This followed a Q2 2025 sale of a post-acute facility for aggregate proceeds of approximately $28 million. Furthermore, the board authorized a program to strategically repurchase up to $150 million of its common stock, signaling management's view on the company's valuation and liquidity. The net loss for Q3 2025 was ($78 million) per share, an improvement from the ($801 million) net loss in the year-earlier period.

Finance: draft 13-week cash view by Friday.

Medical Properties Trust, Inc. (MPW) - Canvas Business Model: Key Resources

You're looking at the core assets that power Medical Properties Trust, Inc.'s entire operation as of late 2025. These aren't just line items; they are the tangible and intangible foundations of their business.

The physical footprint of Medical Properties Trust, Inc. is substantial, representing one of the world's largest owners of hospital real estate. As of September 30, 2025, the portfolio size is clearly defined:

• Global portfolio of 388 hospital facilities.
• Approximately 39,000 licensed beds across the portfolio.
• Properties leased to or mortgaged by 51 hospital operating companies.
• Geographic spread across the United States, the United Kingdom, Switzerland, Germany, Spain, Finland, Colombia, Italy, and Portugal, spanning nine countries and three continents.

The financial scale of these real estate assets is significant. While the total assets reported as of September 30, 2025, were approximately $14.9 billion, the underlying real estate investment is detailed below. This massive asset base is managed through long-term contracts that provide revenue stability.

Here's a quick look at the asset breakdown as of September 30, 2025, based on the total asset reporting:

The structure of the lease agreements is key to the predictable cash flow. These are long-term net lease agreements, meaning the tenant typically handles property taxes, insurance, and maintenance. While the prompt suggested a specific inflation escalator for Q1 2025, we see concrete forward-looking contractual escalators tied to specific deals. For instance, the new lease with NOR Healthcare Systems for six California facilities includes CPI-based annual rent escalators beginning in 2026. Medical Properties Trust, Inc. expects pro rata annualized cash rent from its current portfolio to exceed $1 billion by the end of 2026. Furthermore, cash rents from the recently transitioned former Steward facilities are scheduled to ramp up to more than $23 million in Q4 2025, reaching $160 million annualized by October 2026.

Access to capital markets is a necessary resource for a REIT of this scale, especially for funding acquisitions and managing the balance sheet. Medical Properties Trust, Inc. demonstrated this access in early 2025. They closed substantial financings:

• $1.5 billion USD senior secured notes due 2032.
• €1.0 billion Euro senior secured notes due 2032.
• These financings, completed in February 2025, were used to redeem unsecured notes and pay down the revolving credit facility.
• Net debt stood at $9.65 billion as of June 30, 2025.
• The board authorized a program to strategically repurchase up to $150 million of its common stock as of October 30, 2025.

Finally, the intangible resource is the specialized expertise in healthcare real estate and operator finance. This expertise allows Medical Properties Trust, Inc. to facilitate acquisitions and recapitalizations, helping hospital operators unlock real estate value for operational investments. This model is supported by the fact that significant competition for operations, such as the NOR bid, reflects the EBITDAR profitability history of these infrastructure-like facilities.

Medical Properties Trust, Inc. (MPW) - Canvas Business Model: Value Propositions

You're looking at how Medical Properties Trust, Inc. (MPW) creates value for its customers-the hospital operators. It's about turning bricks and mortar into financial flexibility for them.

Allows hospital operators to unlock real estate capital for operations.

Medical Properties Trust, Inc. acts as a capital partner, letting operators access the value tied up in their real estate. This is crucial for funding necessary operational shifts and investments. The company's financing model is designed to facilitate these acquisitions and recapitalizations so operators can focus on patient care. For instance, the company expects to collect an incremental $200 million plus in annual cash rent from the portfolio of new operators who have taken over transitional assets.

Provides a stable, long-term real estate solution via net-leases.

The core offering is a long-term, stable real estate solution through net-leases. This structure shifts property management and operational costs to the tenant. The weighted average initial term for leases resulting from the Steward Health Care settlement is approximately 18 years, showing a commitment to long-term partnerships. Plus, Medical Properties Trust, Inc. has a 21-year track record of consecutive dividend payments, which speaks to the stability of its underlying cash flow structure. The company is working toward a significant milestone, with management aiming to achieve over $1 billion in pro rata annualized cash rent by the end of 2026.

Facilitates operator recapitalizations and facility improvements.

When an operator needs to transition or improve assets, Medical Properties Trust, Inc. steps in with capital commitments. A recent example involves the new lease agreement with NOR Healthcare Systems for six California facilities. As part of that deal, Medical Properties Trust, Inc. committed to fund up to $60 million in seismic improvements required by regulators over the next four years, which will increase the lease base and generate additional rent. The initial annualized rent for these six facilities is set at $45 million. This transition shows the mechanism in action: cash rental income from new tenants jumped from $3.4 million to $11 million quarter-over-quarter (Q1 to Q2 2025).

Diversified exposure to healthcare real estate across nine countries.

You get exposure to a vast, geographically diverse portfolio. As of September 30, 2025, Medical Properties Trust, Inc. owned 388 facilities with approximately 39,000 licensed beds across nine countries. The total asset base was approximately $14.9 billion at that same date. The portfolio is leased to or mortgaged by 51 hospital operating companies. Here's a quick look at the asset and geographic concentration as of mid-2025:

The diversification extends to asset type as well, with general acute care facilities making up 61.4% of Q2 2025 revenues. Still, the UK remains the largest single international market, accounting for 39.1% of Q2 2025 revenues.

Medical Properties Trust, Inc. (MPW) - Canvas Business Model: Customer Relationships

You're looking at how Medical Properties Trust, Inc. (MPW) manages its relationships with the hospital operators who rent its facilities. Honestly, for a Real Estate Investment Trust (REIT) like MPW, the customer relationship is the business, built on very long-term contracts.

Long-term, defintely strategic, triple-net master lease agreements.

The foundation of the relationship is the long-term, triple-net master lease agreement. This structure means the tenant operator handles nearly all property expenses-taxes, insurance, and maintenance-which simplifies things for Medical Properties Trust, Inc. (MPW). As of September 30, 2025, the portfolio spanned 388 properties and approximately 39,000 licensed beds across 51 hospital operating companies in nine countries. The company is actively working toward a goal of generating >$1B in total annualized cash rent by the end of 2026, excluding the California Prospect properties. Furthermore, they anticipate an incremental $200M+ in scheduled annual cash rent from new operators as they ramp up operations.

Direct relationship management with hospital operator executives.

Managing relationships means keeping a close eye on tenant health. We see this reflected in the operational metrics. For instance, general acute care operators reported a year-over-year increase in EBITDARM (Earnings Before Interest, Taxes, Depreciation, Amortization, Rent, and Management Fees) of more than $200 million. Post-acute operators saw a $50 million EBITDARM increase year-over-year, with specific operators like Ernest Health up 17%, Vibra up 33%, and MEDIAN up 7%. Overall, the total portfolio trailing twelve months (TTM) EBITDARM rent coverage improved to 2.5x, up from 2.3x in Q2 2024. This performance data is what you discuss directly with the executive teams.

Providing financing and capital for tenant growth and upgrades.

Medical Properties Trust, Inc. (MPW) actively helps operators unlock real estate value to fund improvements. A concrete example involves the new lease agreement with NOR Healthcare Systems Corp. for six former Prospect facilities in California. Medical Properties Trust, Inc. (MPW) committed to fund up to $60 million in seismic improvements required by California regulators over the next four years. This capital infusion is structured to increase the lease base and generate additional rent at the prevailing lease yield. Separately, the CFO noted that a recent transaction financed more than $2 billion of German rehabilitation hospitals at a 5.1% coupon, which supports the broader ecosystem of tenant financing and recapitalization.

Active support during tenant restructuring processes (e.g., Prospect).

When a major tenant faces distress, the relationship management shifts to active support and asset protection. Prospect Medical Group had not paid rent since June 2024, and its Connecticut and Pennsylvania lessees had only made minimal payments over the preceding two years. Medical Properties Trust, Inc. (MPW) recognized revenues from Prospect using cash-basis accounting since 2023. During the Chapter 11 restructuring, Medical Properties Trust, Inc. (MPW) prioritized protecting its investment in the California hospitals. A key step involved a settlement with Yale New Haven Health System, which provided $45 million to Prospect, which Medical Properties Trust, Inc. (MPW) expected to use to reduce its outstanding debtor-in-possession (DIP) loan. Following this and expected sales of the three Connecticut hospitals, Medical Properties Trust, Inc. (MPW) anticipated the full repayment of its recent $105 million DIP loan balance. The new lease with NOR for the six California facilities sets an initial stabilized annual rent of $45 million per year, though rent is deferred for the first 6 months and 50% deferred for an additional 6 months. Also, Medical Properties Trust, Inc. (MPW) recently sold two facilities in Phoenix, Arizona, that generated nominal monthly cash rent, for approximately $50 million.

The company is managing a complex transition, aiming for 96% of scheduled rents collected through October from its new tenants, with the exception of three facilities in Ohio and Pennsylvania.

Finance: draft 13-week cash view by Friday.

Medical Properties Trust, Inc. (MPW) - Canvas Business Model: Channels

You're looking at how Medical Properties Trust, Inc. (MPW) gets its services-the real estate capital and financing-into the hands of its hospital operator customers. It's not just one way; it's a multi-pronged approach that blends direct property deals with financial instruments.

Direct leasing and acquisition team

The core channel involves the direct leasing and acquisition team, which is the engine for growing the real estate portfolio. This team culminates extensive research, analysis, and underwriting to forge relationships with hospital management. As of September 30, 2025, Medical Properties Trust, Inc. owned 388 properties, housing approximately 39,000 licensed beds across nine countries. The acquisition process itself is structured in seven steps, starting with executive leadership directing the acquisitions team research and culminating in the transaction closing after thorough underwriting by credentialed professionals.

This channel is currently focused on transitioning assets from troubled operators to new, stable ones. For instance, the agreement with NOR Healthcare Systems for 6 California facilities is a direct result of this team's work, which is expected to generate a stabilized annual cash rent of $45 million per year after a ramp-up period. The company expects its pro rata annualized cash rent from the current portfolio to exceed $1 billion by the end of 2026.

Mortgage and loan agreements with operators

Beyond outright property ownership via sale-leaseback transactions, Medical Properties Trust, Inc. uses mortgage and loan agreements as a channel to provide capital solutions. This allows operators to unlock real estate value for facility improvements or debt replacement without selling the asset outright. This is a key part of their financing model, which also facilitates recapitalizations.

Here's a snapshot of the scale and recent financing activity related to these capital deployment channels:

The company also selectively makes other loans to operators through its taxable REIT subsidiary structure, though specific amounts for this are less frequently detailed than the major property financing.

Joint venture structures for international expansion (e.g., German JV)

Joint ventures are a critical channel for expanding internationally, allowing Medical Properties Trust, Inc. to share risk and access co-investment capital. The German Joint Venture (JV) with Praemia REIM is a prime example of this strategy in action.

The recent refinancing of the German JV debt highlights the channel's success:

• JV Partner: Praemia REIM (50/50 ownership)
• Refinanced Debt Amount: €702.5 million
• New Debt Terms: 10-year, non-amortizing loan at a 5.1% fixed rate
• Underlying Assets: Portfolio of German rehabilitation hospitals operated by MEDIAN
• Rent Growth Since Formation: Approximately €20 million in annual cash rent growth since 2018

Additionally, Medical Properties Trust, Inc. increased its equity investment in the Infracore JV by approximately CHF 50 million during 2025. This shows the JV channel is actively used for both refinancing existing international assets and funding new acquisitions, such as a general acute facility in Switzerland.

Investor Relations for public capital access

The Investor Relations function serves as the channel to access public and institutional capital markets, which is vital for funding acquisitions and managing debt maturities. Medical Properties Trust, Inc. actively communicates its strategy via its website, SEC filings, and conference calls.

Recent capital market activities demonstrate this channel's output:

• Liquidity Position (May 7, 2025): Approximately $1.3 billion, including availability under the $1.28 billion revolving credit facility
• Debt Offering (January 2025): Private offering of up to $2.0 billion in senior secured notes due 2032, plus €500 million of similar notes
• Share Repurchase Program (October 2025): Approved a program for up to $150 million of common stock
• Q3 2025 NFFO per Share: $0.13

This access to capital is what allows the company to re-tenant properties and address debt maturing in 2027 and beyond, giving them enhanced financial flexibility, honestly. Finance: draft 13-week cash view by Friday.

Medical Properties Trust, Inc. (MPW) - Canvas Business Model: Customer Segments

You're looking at the core of Medical Properties Trust, Inc. (MPW)'s business: the operators who use their real estate as capital. As of late 2025, the customer base is a mix of entities across the healthcare spectrum, all relying on Medical Properties Trust, Inc. (MPW) to unlock real estate value for operational investments via sale-leasebacks and long-term net leases.

The customer base includes both for-profit and non-profit hospital operating companies. As of September 30, 2025, Medical Properties Trust, Inc. (MPW) served a total of 51 hospital operating companies across its portfolio.

The portfolio is strategically weighted toward acute care, which represents the largest concentration of assets. The General Acute Care Hospitals segment holds approximately $9.0 billion in assets as of the third quarter of 2025. This segment also represented 59.4% of total assets and 61.4% of second quarter 2025 revenues.

Beyond general acute care, Medical Properties Trust, Inc. (MPW) serves operators of specialized facilities. These include Behavioral Health facilities and Post-Acute facilities. The asset values for these segments as of September 30, 2025, show a clear focus on the core hospital business, but with significant exposure to these other critical areas.

The customer base is geographically diverse, spanning the United States and eight other countries. This international footprint is a key part of the diversification strategy. Operators are located across the US, the United Kingdom, Switzerland, Germany, Spain, Finland, Colombia, Italy and Portugal.

Here's a quick look at the portfolio scale serving these customers as of September 30, 2025:

The asset allocation across the main facility types as of the end of the third quarter of 2025 looked like this:

The performance of these customer segments is a major focus. For instance, in the third quarter of 2025, Medical Properties Trust, Inc. (MPW) saw positive operating recovery trends:

• General acute-care tenants reported a year-over-year increase in EBITDARM of more than $200 million.
• Post-acute operators reported an EBITDARM increase of approximately $50 million versus the prior year.
• Behavioral Health portfolio EBITDARM increased by $10 million year-over-year.

Also, the ramp-up of rent collections from new operators is proceeding; cash rental income from new tenants increased to $11.0 million in the second quarter of 2025 from $3.4 million in the first quarter of 2025.

Finance: draft 13-week cash view by Friday.

Medical Properties Trust, Inc. (MPW) - Canvas Business Model: Cost Structure

You're looking at the major drains on Medical Properties Trust, Inc.'s cash flow as of late 2025. The cost structure is heavily influenced by the cost of capital and managing tenant distress.

Interest Expense on Debt is a primary driver. For the trailing twelve months (TTM) ending September 2025, Medical Properties Trust, Inc. reported an interest expense of $480.0 Mil. This reflects the higher borrowing costs following recent financings, such as the February 2025 issuance of $1.5 billion USD and €1.0 billion Euro senior secured notes due 2032. For the second quarter of 2025, the interest expense was $129.7 million. The expected annual interest expense for 2025 is around $540 million.

The cost structure includes significant non-recoverable property expenses. For the nine months ended September 30, 2025, property-related expenses, which include items like property taxes and insurance not recovered from tenants, totaled $9.3 million.

General and Administrative (G&A) Expenses are also a component. For the first quarter ended March 31, 2025, G&A expenses were reported at $41,911 thousand. Management noted that higher G&A expense in the third quarter was driven primarily by higher stock compensation expense related to the fair market value changes of 2024 and 2025 performance-based equity compensation.

The commitment to shareholders results in a substantial cash outflow via Quarterly Dividend Payments. The expected annual outflow for 2025 is $192 million. The quarterly dividend paid in October 2025 was $0.08 per share, and a dividend of $0.09 per share was declared in November 2025 for payment in January 2026. The stated annual dividend is $0.32 per share.

Finally, the cost structure is periodically hit by Impairment Charges related to troubled tenants. Medical Properties Trust, Inc. recorded approximately $82 million in net impairments for the third quarter ended September 30, 2025, with the majority related to Prospect Medical Group bankruptcy transactions.

Here's a quick look at some of these key cost elements:

• Interest Expense (TTM ended Sep 2025): $480.0 Million
• Property Taxes/Insurance Not Recovered (9M 2025): $9.3 Million
• Impairment Charges (Q3 2025): $82 Million
• Quarterly Dividend (Implied Annual Outflow 2025): $192 Million
• G&A Expense (Q1 2025): $41,911 Thousand

You can see the relationship between some of these expenses and the debt load:

Medical Properties Trust, Inc. (MPW) - Canvas Business Model: Revenue Streams

You're looking at the core ways Medical Properties Trust, Inc. brings in money as of late 2025. It's primarily about collecting rent from the hospital properties they own, but there are other important pieces, too.

The main engine is the long-term lease structure. This provides the predictable cash flow that real estate investment trusts (REITs) rely on. You'll see that the requested figure for this stream is quite high, reflecting the scale of their portfolio.

• Rental income from long-term leases (TTM as of Sep 2025): $934 million.
• Interest income from mortgage loans and other tenant financing.
• Tenant recoveries for property operating expenses.
• Proceeds from strategic asset sales (e.g., $50 million from Arizona facilities).

To give you a clearer picture of the components that make up the top line, here is a breakdown of the most recent concrete figures we have for these streams around the third quarter of 2025.

The interest income component is less explicitly detailed in the TTM reports found, but we know it exists as part of their financing model. For instance, in the second quarter of 2025, the line item Interest and other income was $12.911 million for that quarter. Also, the company is actively managing its loan book; for example, they entered a settlement with Prospect and Yale New Haven Health System in September 2025 expecting proceeds to exceed the current debtor-in-possession (DIP) loan balance of approximately $100 million.

Tenant recoveries cover specific property operating expenses. For the nine months ending September 30, 2025, Medical Properties Trust, Inc. recorded $9.3 million for ground lease and other expenses like property taxes and insurance paid directly by them and reimbursed by tenants. This is a direct pass-through mechanism, so it's less about profit and more about covering costs associated with the properties.

Asset sales are a key lever for liquidity and balance sheet management. The sale of two facilities in Arizona in August 2025 generated aggregate proceeds of approximately $50 million. This activity is strategic, helping to fund debt repayment and other corporate actions, like the authorized $150 million share repurchase program.