Medical Properties Trust lost $736 million in Q1: find out more

Medical Properties Trust Inc (NYSE: MPW) is in the red today after reporting disappointing financial results for its first quarter. 

Why did MPT see weakness in Q1?

The real estate investment trust attributed weakness in Q1 to Steward Health Care System – its largest tenant that filed for Chapter 11 bankruptcy this week. 

MPT sold five of its hospitals to Prime Healthcare for about $350 million in April. 

It generated some $1.10 billion last month in proceeds from unloading a 75% interest in Utah hospitals as well. Edward K. Aldag – the chief executive of Medical Properties Trust said in a press release this morning:

We continue to execute a capital allocation strategy that we now expect will exceed our initial target of $2.0 billion in liquidity transactions in 2024. This strategy has repeatedly demonstrated strong demand for real hospital assets and provided capital to reduce debt.

Medical Properties Q1 earnings snapshot

• Lost $736 million that translates to $1.23 per share
• Had $33 million of net income a year ago (5 cents a share)
• Normalised funds from operations declined from $0.37 to $0.24
• Revenue declined 23% to $271.3 million as per the earnings report
• Consensus was 25 cents a share NFFO on $284 million revenue

Note that MPT has offered $75 million in “DIP funding to ensure continued operations and continuity of patient care” at Steward Health Care System. 

Wall Street currently has a consensus “hold” rating on $MPW.

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