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Medical Properties (MPW)
NYSE:MPW
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Medical Properties
(NYSE:MPW)
47Neutral
Positive Factors
Asset Disposition
MPW completed the disposition of three hospitals in Florida, generating $440 million in total proceeds.
Debt Management
The company has solved their near-term debt maturity issues with no debt maturing until 2027.
Tenant Problem Resolution
MPW continues to reach resolution on their tenant problems, and has started to collect rents on three of the new operators related to the Steward hospitals.
Negative Factors
Bankruptcy Impact
Prospect Medical Holdings has recently filed for Chapter 11 bankruptcy protection, impacting MPW's financial situation.
Debt Maturity Challenges
MPW faces a significant debt maturity wall with $1.3 billion due in 2025, $2.1 billion in 2026, and $1.6 billion in 2027, necessitating asset sales and refinancing.
Impairment Charges
MPW reported a net loss of $0.20 per share attributed to impairment charges related to Prospect Medical Group and PHP Holdings.
Medical Properties (MPW) vs. S&P 500 (SPY)
Market Cap
$3.18B
Dividend Yield7.44%
Average Volume (3M)10.68M
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth14.19%
EPS Growth-331.18%
CountryUS
Employees118
SectorReal Estate
Sector Strength76
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)-4.02
Shares Outstanding606,654,240
10 Day Avg. Volume9,429,078
30 Day Avg. Volume10,683,582
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap3.45
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit11.33
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.25Price Target Upside19.27% Upside
Rating ConsensusHold
Number of Analyst Covering4
Medical Properties Business Overview & Revenue Model
Company DescriptionMedical Properties Trust, Inc. (MPW) is a real estate investment trust (REIT) that primarily invests in healthcare facilities. Founded in 2003, the company specializes in acquiring and developing net-leased healthcare facilities, primarily hospitals, across the United States and internationally. MPW's portfolio includes general acute care hospitals, inpatient rehabilitation hospitals, long-term acute care hospitals, and other medical office buildings, making it a prominent player in the healthcare real estate sector.
How the Company Makes MoneyMedical Properties Trust, Inc. generates revenue primarily through leasing its healthcare facilities to hospital operators under long-term net leases. The company earns rental income as its primary revenue stream, which is typically structured with annual rent escalations. These leases often require the tenant to cover property-related expenses such as maintenance, insurance, and taxes, ensuring a stable and predictable income stream for MPW. Additionally, the company may engage in strategic acquisitions and partnerships to expand its portfolio and enhance its revenue potential, focusing on properties that align with its investment strategy.
Medical Properties Financial Statement Overview
Summary
Medical Properties is facing several financial challenges, including declining revenue, profitability issues, and high leverage. The company needs to address its negative cash flow situation and improve operational efficiency to stabilize its financial health. Despite some improvements in debt levels, the overall financial trajectory suggests a need for strategic adjustments to achieve sustainable growth.Income Statement
Medical Properties has experienced declining revenue growth with a decrease in total revenue from 2022 to 2024. Gross profit margin has significantly decreased in the TTM compared to previous years. The company faced a substantial net loss in the TTM, negatively impacting the net profit margin. Despite these challenges, EBIT margin showed some improvement in the TTM, though EBITDA margin turned negative, indicating operational difficulties.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has improved due to a decrease in total debt, but remains relatively high, suggesting leverage risk. Return on Equity (ROE) is negative in the TTM due to net losses, but equity ratio remains stable. The balance sheet reflects a decline in total assets and stockholders' equity, indicating a need for better asset management and profitability.50
Neutral
Cash Flow
Operating cash flow has significantly decreased in the TTM, reflecting weaker cash generation capabilities. The free cash flow turned negative, showing cash flow difficulties. The free cash flow to net income ratio is unfavorable due to negative net income, and the operating cash flow to net income ratio reflects challenges in converting earnings into cash.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 995.55M | 871.80M | 1.54B | 1.54B | 1.25B | Gross Profit |
| 968.29M | 830.23M | 1.50B | 1.51B | 1.22B | EBIT |
| 861.76M | 81.28M | 1.00B | 1.04B | 828.44M | EBITDA |
| 840.60M | 684.64M | 1.34B | 1.36B | 1.09B | Net Income Common Stockholders |
| -2.32B | -556.48M | 902.60M | 656.02M | 431.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 332.33M | 250.02M | 235.67M | 459.23M | 549.88M | Total Assets |
| 14.29B | 18.30B | 19.66B | 20.52B | 16.83B | Total Debt |
| 129.04M | 10.22B | 11.34B | 11.44B | 9.01B | Net Debt |
| -203.29M | 9.97B | 11.11B | 10.98B | 8.46B | Total Liabilities |
| 9.46B | 10.67B | 11.06B | 12.07B | 9.49B | Stockholders Equity |
| 4.83B | 7.63B | 8.59B | 8.44B | 7.34B |
| Cash Flow | Free Cash Flow | |||
| 245.48M | 505.79M | -801.35M | 746.11M | -3.67B | Operating Cash Flow |
| 245.48M | 505.79M | 739.01M | 811.66M | 617.64M | Investing Cash Flow |
| 1.32B | 517.56M | 396.06M | -3.86B | -2.95B | Financing Cash Flow |
| -1.48B | -1.02B | -1.34B | 2.95B | 1.40B |
Medical Properties Technical Analysis
Negative
5.24
Price Trends
5.57
Negative
4.90
Positive
4.80
Positive
Market Momentum
-0.06
Positive
43.89
Neutral
36.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPW, the sentiment is Negative. The current price of 5.24 is below the 20-day moving average (MA) of 5.32, below the 50-day MA of 5.57, and above the 200-day MA of 4.80, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 36.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MPW.
Medical Properties Risk Analysis
Medical Properties disclosed 56 risk factors in its most recent earnings report. Medical Properties reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Medical Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.54B | 24.27 | 10.53% | 4.74% | 4.88% | 0.41% | |
74 Outperform | $1.45B | 34.67 | 2.86% | 3.06% | -0.10% | 78.83% | |
74 Outperform | $1.56B | 16.68 | 9.81% | 6.47% | 6.54% | -4.13% | |
63 Neutral | $4.14B | 32.45 | 4.57% | 6.89% | 7.22% | 809.92% | |
60 Neutral | $2.79B | 11.37 | 0.20% | 8519.74% | 6.07% | -14.95% | |
57 Neutral | $564.03M | 634.96 | 1.19% | 10.76% | -0.43% | -94.73% | |
47 Neutral | $3.18B | ― | -28.86% | 7.44% | 14.19% | -331.18% |
* Real Estate Sector Average
Performance Comparison
MPW
Medical Properties
5.24
1.08
25.96%
LTC
LTC Properties
35.25
4.04
12.94%
NHI
National Health Investors
75.87
14.72
24.07%
SBRA
Sabra Healthcare REIT
17.42
3.86
28.47%
GMRE
Global Medical REIT
7.81
0.10
1.30%
SILA
Sila Realty Trust, Inc.
26.09
9.41
56.41%
Medical Properties Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -5.07%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflected positive advancements in bond issuance and operator performance, especially internationally. However, these were balanced by financial challenges, including significant impairments and operational issues with the Steward transition.Q1-2025 Updates
Positive Updates
Issuance of Secured Bonds
In February, Medical Properties Trust issued over $2.5 billion of seven-year secured bonds at a blended coupon rate of approximately 7.8%, strengthening the balance sheet and providing liquidity to cover all debt maturities through 2026.
Improved Operator Performance
Operators reported strong revenues driven by reimbursement rate increases and admission trends. The company saw an uptick in year-over-year EBITDARM coverage across asset types.
Successful Transition of New Operators
New tenants such as HSA, Honor Health, Quorum Health, and others are showing strong growth and operational efficiency across various regions.
International Portfolio Strength
European operators like Circle Health and Priory in the UK, and Median in Germany are showing strong performance driven by increased surgical volumes and improved reimbursement environments.
Negative Updates
Challenges with Steward Transition
Disputes in Ohio involving Insight Health and Steward Health Care’s advisors regarding cash collections have interrupted progress at two facilities.
Financial Results Concerns
Reported a GAAP net loss of $0.20 per share and normalized FFO of $0.14 per share, impacted by refinancing transactions and increased stock compensation expenses.
Impairments and Fair Value Adjustments
Recorded $73 million in impairments and fair market value adjustments to investments in Prospect, real estate in Connecticut, and PHP, with additional impairments in Colombia.
Company Guidance
During the Medical Properties Trust First Quarter 2025 Earnings Conference Call, CEO Edward Aldag and the team provided detailed guidance on the company's financial and operational performance. The company highlighted the issuance of over $2.5 billion in secured bonds at a 7.8% blended coupon rate, enhancing liquidity and covering debt maturities until 2026. It projected reaching annualized cash rent of over $1 billion once new tenants are fully operational. The call detailed improvements in EBITDARM coverage, driven by increased volumes and strategic cost management, and noted strong performance in the UK, Germany, and Swiss markets. Medical Properties Trust reported a GAAP net loss of $0.20 per share and a normalized FFO of $0.14 per share for Q1 2025, with expectations of a $0.02 per share reduction in normalized FFO in Q2 due to increased interest expenses. The company emphasized its strategic focus on enhancing shareholder returns through accretive growth and operational efficiency.Medical Properties Corporate Events
Private Placements and FinancingLegal ProceedingsBusiness Operations and Strategy
Medical Properties Trust Strengthens Financial Position in 2025
Positive
Jan 29, 2025
On January 29, 2025, Medical Properties Trust announced a private offering of up to $2.0 billion in senior secured notes due 2032, alongside €500 million of similar notes, aimed at enhancing its financial positioning. Throughout 2024, the company strategically disposed of several properties, realizing significant financial gains and cash proceeds, which bolstered its financial strength and allowed for substantial debt repayments. The company also settled a major legal and operational restructuring with Steward Health Care, which included re-tenanting properties and resolving bankruptcy-related issues, reflecting a proactive approach to managing financial challenges and optimizing its portfolio.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.