1287865--3/14/2008--MEDICAL_PROPERTIES_TRUST

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It may be costly to replace defaulting tenants and we may not be able to replace defaulting tenants with suitable replacements on suitable terms. Our revenues are dependent upon our relationship with, and success of, Vibra and Prime. Accounting rules may require consolidation of entities to which we have made loans and other adjustments to our financial statements. The bankruptcy or insolvency of our tenants under our leases could seriously harm our operating results and financial condition. Our facilities are currently leased to only eight tenants, five of which were recently organized and have limited or no operating histories, and failure of any of these tenants and the guarantors of their leases to meet their obligations to us would have a material adverse effect on our revenues and our ability to make distributions to our stockholders. Our business is highly competitive and we may be unable to compete successfully. Our use of debt financing will subject us to significant risks, including refinancing risk and the risk of insufficient cash available for distribution to our stockholders. Failure to hedge effectively against interest rate changes may adversely affect our results of operations and our ability to make distributions to our stockholders. Most of our current tenants have, and prospective tenants may have, an option to purchase the facilities we lease to them which could disrupt our operations. RISKS RELATING TO REAL ESTATE INVESTMENTS Our real estate and mortgage investments are and will continue to be concentrated in healthcare facilities, making us more vulnerable economically than if our investments were more diversified. Our facilities may not have efficient alternative uses, which could impede our ability to find replacement tenants in the event of termination or default under our leases. Illiquidity of real estate investments could significantly impede our ability to respond to adverse changes in the performance of our facilities and harm our financial condition. Development and construction risks could adversely affect our ability to make distributions to our stockholders. Our facilities may not achieve expected results or we may be limited in our ability to finance future acquisitions, which may harm our financial condition and operating results and our ability to make the distributions to our stockholders required to maintain our REIT status. If we suffer losses that are not covered by insurance or that are in excess of our insurance coverage limits, we could lose investment capital and anticipated profits. Capital expenditures for facility renovation may be greater than anticipated and may adversely impact rent payments by our tenants and our ability to make distributions to stockholders. All of our healthcare facilities are subject to property taxes that may increase in the future and adversely affect our business. As the owner and lessor of real estate, we are subject to risks under environmental laws, the cost of compliance with which and any violation of which could materially adversely affect us. Our interests in facilities through ground leases expose us to the loss of the facility upon breach or termination of the ground lease and may limit our use of the facility. RISKS RELATING TO THE HEALTHCARE INDUSTRY Reductions in reimbursement from third-party payors, including Medicare and Medicaid, could adversely affect the profitability of our tenants and hinder their ability to make rent payments to us. The healthcare industry is heavily regulated and existing and new laws or regulations, changes to existing laws or regulations, loss of licensure or certification or failure to obtain licensure or certification could result in the inability of our tenants to make lease payments to us. Our tenants are subject to fraud and abuse laws, the violation of which by a tenant may jeopardize the tenant s ability to make lease and loan payments to us. Certain of our lease arrangements may be subject to fraud and abuse or physician self-referral laws. State certificate of need laws may adversely affect our development of facilities and the operations of our tenants. RISKS RELATING TO OUR ORGANIZATION AND STRUCTURE Maryland law and Medical Properties charter and bylaws contain provisions which may prevent or deter changes in management and third-party acquisition proposals that you may believe to be in your best interest, depress the price of Medical Properties common stock or cause dilution. We depend on key personnel, the loss of any one of whom may threaten our ability to operate our business successfully. Our UPREIT structure may result in conflicts of interest between Medical Properties stockholders and the holders of our operating partnership units. TAX RISKS ASSOCIATED WITH OUR STATUS AS A REIT Loss of our tax status as a REIT would have significant adverse consequences to us and the value of Medical Properties common stock. Failure to make required distributions would subject us to tax. Complying with REIT requirements may cause us to forego otherwise attractive opportunities. Loans to our tenants could be recharacterized as equity, in which case our rental income from that tenant might not be qualifying income under the REIT rules and we could lose our REIT status. RISKS RELATED TO AN INVESTMENT IN OUR COMMON STOCK The market price and trading volume of our common stock may be volatile. Future sales of common stock may have adverse effects on our stock price. An increase in market interest rates may have an adverse effect on the market price of our securities.

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1287865--3/14/2008--MEDICAL_PROPERTIES_TRUST_INC