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David Stafford
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Student of markets, enjoys following their course.
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  • Molting(MPW) 3 comments
    Mar 30, 2012 5:51 PM | about stocks: MPW
    In a continuation of the themes which might lead one to invest in healthcare Reits, MPW is following the game plan, and plans for growth are seeming more and more apparent.

    In kind of a unique news story, it is mentioned that MPW is actually building a new building at Birmingham Airport. MPW is based out of Birmingham Alabama, for the sake of clarification.

    As was discussed and perhaps presumed from themes in previous posts, MPW is kind of a funny Reit. This may be one of those moments, when one has decent value, as far as current investment is concerned, but far more importantly, one has the opporatunity to invest in an up and coming growing operation.

    As was guessed hehe, in previous postings it was presumed that though MPW was suffering at the moment, presumably due to its broader market correlation, that it was priming its self to grow. While stalwarts stay invested at this price, and payout level, one may presume, that these same stalwarts may be soon rewarded for their diligence.

    In themes from a post or two ago, we were discussing the possibilities of MPW increasing payouts and perhaps hence price, in the future, once it sort of fully incrporated Ernest Health and its facilities and cash flows into its(MPWs) own larger umbrella.

    What's kind of fun about this story is that we actually get the chance to see this happening, in icremental little phases, like seeing the construction of a high quality automatic watch for example.

    For, with this sort of springboard like development concerning upgraded transportation options, we are perhaps seeing this maturing of MPW from a young, soft nymph, to a harder shelled more resiliant adult.

    Its fun to see this occuring(perhaps thats kind of subjective), and its even more fun to have been somewhat invested in MPW from before hand.

    It is perhaps these sorts of events that make investing fun, and seeing a larger but not behemoth company, grow into a larger stronger one, is satisfying, especially when one has some familiarity with said growing enterprise.

    Link to story; http://blog.al.com/businessnews/2012/03/medical_properties_trust_lease.html

    Themes: MPW, Alabama, transportation, Birmingham Stocks: MPW
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Comments (3)
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  • Paul Nouri, CFP
    , contributor
    Comments (344) | Send Message
     
    Any thoughts why MPW sports a significantly higher yield than most REITs?
    6 Apr 2012, 11:04 AM Reply Like
  • David Stafford
    , contributor
    Comments (9) | Send Message
     
    Author’s reply » Hi Mr. Nouri,

     

    That's a great question. I guess to take a stab at it, I would guess that its a sort of confluence of several factors. To brake it down;

     

    1. Profitable Industry
    According to some, the healthcare Reit industry is, in general the second to most profitable industry in the US after the beverage industry, at least according to the article on this site here;

     

    http://bit.ly/Hm31Pu

     

    2. Perspective on high yielding healthcare Reits.
    When one couples that perspective with the knowledge of the average returns from highest yielding healthcare Reits, which could be sampled from this site here; one gets a somewhat clearer picture.

     

    http://bit.ly/I9GGId

     

    (MPW is the highest yielding healthcare Reit mentioned, with 8% vs on average about 6%)

     

    3. Sector Niche; specific emphasis on "Acute Care"
    When one then couples this with MPW's focus, which is according to them, mostly on "acute care" or hospital care, which is usually quite expensive and hence profitable, the picture becomes seemingly clearer.

     

    Here's the link to their site where they breakdown the composition of their investments;

     

    http://bit.ly/Hm31Px

     

    And, I guess one could conclude, that MPW, being situated in the most profitable sub-sector, of the second to most profitable overall market sector, may allow it to make these sorts of returns, I guess that would have to be my best prognosis per se.

     

    Thanks for the great question.
    7 Apr 2012, 08:38 AM Reply Like
  • psychobob
    , contributor
    Comments (5) | Send Message
     
    It's rather obvious that healthcare will continue to remain a major entity, since health and life are synonymous. Everyone, at one time or another will require a specialty hospital program, thus making MPW, and like REITS, a necessity for financing niche markets. It would seem MPW is well positioned, despite political headwinds. Current and future dividends make it attractive. Again, the healthcare sector will always remain #1 so long as there is life on this planet.
    2 Jul 2012, 04:51 PM Reply Like
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