Medical Properties Trust: Steward Bankruptcy Exposes Shorts To Squeeze, 11.2% Dividend Yield

Pacifica Yield
12.63K Followers

Summary

  • Medical Properties Trust is the most shorted US REIT with 36.7% of its outstanding shares currently being sold short.
  • The REIT is paying out an annualized $0.60 per share dividend for an 11.2% yield. This is 160% covered by normalized FFO.
  • A replacement of Steward Health Care System with better-qualified operators in MPW-owned hospitals will drive a material reduction in the risk profile of the REIT.

Empty hospital bed in emergency room

ER Productions Limited/DigitalVision via Getty Images

After falling roughly 80% from its all-time high in 2022 but up since I last covered the ticker, Medical Properties Trust (NYSE:MPW) has seen its largest tenant, Steward Health Care System ("SHCS")

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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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