2024-04-13 13:05:08 ET
Summary
- Medical Properties Trust saw a spike in shares after announcing a significant update that will allow the company to pay down a large portion of its debt.
- The company sold off its interest in five hospitals in Utah, receiving $886 million and reducing its debt.
- The company has already achieved 80% of its $2 billion target for asset sales this year, with potential for further debt reduction.
- This shows the quality and value of the assets on its books and its ability for additional upside in the long run.
The last few weeks have been a really interesting time for shareholders of Medical Properties Trust ( MPW ). The company, which operates as a REIT that owns and leases out medical properties for other firms to run, saw its shares spike after the market closed on April 12th. That move higher, about 12.3% as I type this, was driven by a rather significant update that should allow the company to pay down a nice chunk of its debt. If this move higher holds, it will mean that shares will be up 28.8% since I last wrote about the firm, rating it a 'strong buy', back in January of this year. At the end of the day, this reduces the risk for shareholders who are worried about the company's condition, especially in light of the trouble that its largest tenant, Steward Health Care faces....
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Medical Properties Trust Takes A Chunk Out Of Its Debt With Newest Asset Sales