Franck-Boston
It has been a wild ride for shareholders of Medical Properties Trust, Inc. (NYSE:MPW) which went through a major transformation in the last two years.
The real estate investment trust slashed its dividend twice and sold off a
Medical Properties Trust: The Worst Is Over
Summary
- Medical Properties Trust has stabilized after losing a major tenant, with FFO turning positive and no near-term debt maturities threatening its operations.
- Despite recent dividend cuts, the payout is well-covered by normalized FFO, and the trust’s low payout ratio offers a margin of safety.
- The stock trades at a significant discount to peers on an NFFO multiple basis, presenting a compelling re-rating and upside potential if execution continues.
- While high debt remains a risk, I believe the worst is over and the trust is poised for growth—thus, I rate Medical Properties Trust a Strong Buy.
A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.
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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