2024-04-15 07:04:30 ET
Summary
- Medical Properties Trust announced a major asset sale last week, leading to significant cash inflows.
- Accelerated asset sales are a game-changer for MPW because they are set to improve the REIT's balance sheet and reduce negative sentiment.
- MPT's NFFO is more than sufficient to cover the dividend, even in the case of higher asset sales down the road.
- Shares continue to be seriously mispriced.
The investment proposition for Medical Properties Trust ( MPW ) has significantly improved last week as the hospital REIT announced a major asset sale which is set to lead to significant cash inflows. Separately, Medical Properties announced the payment of a $0.15 per-share quarterly dividend with a pay date of May 1, 2024. The dividend announcement, paired with a new major asset sale that brings year-to-date divestments to more than $1.6B, reduced negative investment sentiment last week, with shares of Medical Properties soaring more than 12% after these announcements. I believe MPT is going to divest even more assets in FY 2024, leading to a potential out-performance of the $2.0B asset divestiture target and the dividend is now even safer than I expected. With Medical Properties selling more assets, the company is also set to reduce its debt significantly. For those reasons, I am upgrading MPW to buy!...
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Medical Properties Trust: 2 Victories In 1 Week (Rating Upgrade)