VICI - Medical Properties Trust Q4: Wouldn't Touch This REIT With A 10-Foot Pole

2024-04-04 17:00:00 ET

Summary

• Medical Properties Trust has faced ongoing issues with tenant problems and declining financials. Revenue declined from $1.5 billion to $871.8 million.
• The company's dividend is at high risk of being cut or eliminated due to liquidity issues and a high payout ratio. FFO declined year-over-year by 69%.
• MPW's leverage level has increased, indicating potential challenges in the future. Overall, I rate this REIT a strong sell.
• Despite their efforts to achieve $2 billion in 2024 to satisfy upcoming debt, management's vagueness on the company's future growth prospects concerns me and is a reason investors should avoid.

Previous Thesis

I last covered Medical Properties Trust, Inc. ( MPW ) back in November in an article titled: Don't Get Cut Being Greedy When You Should Be Fearful . This was an obvious play on words referencing investors catching a falling knife in the form of MPW. For the record, I was once a shareholder in MPW, but sold out a while ago at a loss before they cut the dividend....

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