Medical Properties: Bull Thesis Supported By 2 Independent Assessments

Summary

  • A key lesson I learned in real estate is that when you see a good bargain, seek independent assessments to make sure it is not a trap.
  • The lesson is very applicable to the current situation surrounding Medical Properties Trust.
  • This article will check its debt level, capital structure, profit sustainability, and valuation metrics.
  • And you will see why I do not see it as a value trap.
  • I do much more than just articles at Envision Early Retirement: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Concept image of business tag REAL ESTATE. Three-dimensional letters geometrically on a white background. , TRUST, INVESTMENT, TAX, REIT, VALUATION, EARNINGS, INSURANCE, EBITDA 3d rendering

Kwarkot

Investment thesis

For those of you who have been landlords, you know that investing in REIT stocks shares many similarities with investing in physical properties. In this article, I will apply two lessons learned from my landlord experiences to Medical Properties Trust (

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This article was written by

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Sensor Unlimited is an economist by training with a PhD, with a focus on financial economics. She is a quantitative modeler and for the past decade she has been covering the mortgage market, commercial market, and the banking industry. She writes about asset allocation and ETFs, particularly those related to the overall market, bonds, banking and financial sectors, and housing markets.

Sensor Unlimited contributes to the investing group Envision Early Retirement which is led by Sensor Unlimited. They offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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