Medical Properties Trust: The Roller Coaster Is Going Up

Summary

  • MPW faced uncertainty due to Steward Hospitals' default but has now reached an agreement to own and re-lease the properties.
  • MPW's earnings will bottom out in Q4 but are expected to ramp up through 2025 and 2026 as new operators take over.
  • The dividend is restricted to $0.08/quarter but could increase if property transitions are completed rapidly; expect potential raises by mid-2025.
  • MPW's share price is recovering with the removal of uncertainty; hold for long-term gains and reassess when momentum slows.
  • This idea was discussed in more depth with members of my private investing community, High Dividend Opportunities. Learn More »

Fun on rollercoaster ride!

skynesher

Co-authored by Rida Morwa

Medical Properties Trust (NYSE:MPW) is a hospital REIT that has been dealing with the default and bankruptcy of its largest tenant. Steward Hospitals defaulted on its rent obligations in Q4 2023 and when this

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This article was written by

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Beyond Saving is a professional in commercial real estate providing research on REITs with a focus on properties being acquired and sold by REITs. He shares investment ideas with the understanding that the quality and value of the real estate purchased by a REIT serves as a significant catalyst for future pricing.

Beyond Saving contributes to the investing group High Dividend Opportunities led by Rida Morwa and a team of other top Seeking Alpha income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield. Features include: model portfolio with buy/sell alerts, preferred and baby bond portfolios for more conservative investors, vibrant and active chat with access to the service’s leaders, dividend and portfolio trackers, and regular market updates. The service philosophy focuses on community, education, and the belief that nobody should invest alone.

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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.

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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