Medical Properties Trust Yields 11%, But Don't Be Greedy

Labutes IR
4.06K Followers

Summary

  • Medical Properties Trust has several fundamental issues, including tenant concentration, operators’ financial distress, and poor dividend coverage.
  • Short-seller attacks also raise more questions about its business sustainability, not boding well for a safe and recurring income over the long term.
  • Despite its high-dividend yield, Medical Properties Trust is not a good income play.

Empty corridor in modern hospital with information counter and hospital bed in rooms.3d rendering

Ninoon

Medical Properties Trust (NYSE:MPW) offers a high-dividend yield that is not sustainable, plus its business practices are questionable, making it a poor income play right now for long-term investors.

As this is my initial coverage on MPT, first I do

This article was written by

4.06K Followers
Labutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existing author The Outsider.

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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