Medical Properties Trust: 2 Victories In 1 Week (Rating Upgrade)

The Asian Investor
29K Followers

Summary

  • Medical Properties Trust announced a major asset sale last week, leading to significant cash inflows.
  • Accelerated asset sales are a game-changer for MPW because they are set to improve the REIT's balance sheet and reduce negative sentiment.
  • MPT's NFFO is more than sufficient to cover the dividend, even in the case of higher asset sales down the road.
  • Shares continue to be seriously mispriced.
High Yield, Low Risk Road Sign

JamesBrey

The investment proposition for Medical Properties Trust (NYSE:MPW) has significantly improved last week as the hospital REIT announced a major asset sale which is set to lead to significant cash inflows. Separately, Medical Properties announced the payment of a $0.15 per-share quarterly

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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.

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