Medical Properties downgraded to Underperform at BofA after ‘negative’ quarter

As previously reported, BofA analyst Joshua Dennerlein downgraded Medical Properties Trust to Underperform from Neutral with a price target of $8, down from $9. The firm came away from the company’s quarterly report “more negative” due to increased exposure to top tenant Steward by Medical Properties participating in the company’s ABL facility as the fact that Q2 included an 11c per share benefit from the receipt of equity in PHP – a managed care business owned by Prospect – in lieu of unpaid cash rent from Prospect.