Medical Properties Trust: 2025 Could Be A Rebound Year

Summary

• Medical Properties Trust delivered decent Q1 earnings earlier in May.
• Ongoing non-core asset sales have led to a contraction in the REIT's normalized FFO base.
• Despite FFO declines from divestitures, the dividend remains well-covered with a 1.75x coverage ratio, making it safe for 2025.
• Shares trade at a 37% discount to book value, creating a large cushion for investors worried about the REIT's growth trajectory.
• If the REIT halts FFO declines and maintains financial discipline, a revaluation to book value is likely, presenting upside for investors.

FatCamera/E+ via Getty Images

Medical Properties Trust (MPW) delivered an earnings sheet for the first fiscal quarter that met expectations at the beginning of the month, but that also showed progress in terms of the hospital REIT's restructuring. Medical Properties has aggressively sold non-core

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.