Medical Properties Trust: Substantial Upside Potential With A 9% Yield

Bela Lakos
1.34K Followers

Summary

  • MPW's stock appears to be undervalued based on the Gordon Growth Model.
  • Substantial risks need to be kept in mind, including the dependency on the five largest tenants and the exposure to European assets.
  • We currently find the risk-return profile attractive based on the Q3 results and the valuation, and therefore, we rate the stock as a "buy".

Doctors assisting patients at the hospital

andresr

Medical Properties Trust, Inc. (NYSE:MPW) is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. Year-to-date, the company has lost almost 50% of its market value and as a result the stock is

This article was written by

1.34K Followers
Petroleum engineer with an enthusiasm for investing, accounting and personal finances.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MPW either through stock ownership, options, or other derivatives. 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.

Past performance is not an indicator of future performance. This post is illustrative and educational and is not a specific offer of products or services or financial advice. Information in this article is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. This article has been co-authored by Mark Lakos.

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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