Real estate investment trust Medical Properties (NYSE:MPW) saw its shares surge by 9% in after-hours trading after it announced the sale of five Utah hospitals to a joint venture formed with an investment fund. In this deal, MPW retains a 25% stake in the venture while the fund has acquired a 75% stake for $886 million. This affirms MPW’s estimated lease base of $1.2 billion. Additionally, the venture secured $190 million in non-recourse financing, providing MPT with a significant cash inflow.
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In fact, these deals generated around $1.1 billion in immediate cash for Medical Properties, which will be used to pay off a $300 million Australian term loan and reduce other debts. With these developments, the firm anticipates surpassing its liquidity transaction goal of $2 billion for 2024. So far, it has seen $1.6 billion in transactions on a year-to-date basis.
Is MPW Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on MPW stock based on two Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 49% decline in its share price over the past year, the average MPW price target of $4.20 per share implies 5.26% upside potential.
