Confessions Of A Medical Properties Trust Bagholder (NYSE:MPW)

I’m now a Medical Properties Trust (NYSE:MPW) bagholder, an unfortunate position in a new year that promised optimism. The owner of acute care hospitals kicked off 2024 with a barrage of setbacks stemming from Steward Health Care System (“SHCS”), its largest tenant. SHCS drove $70.7 million in revenue for MPW’s last reported fiscal 2023 third quarter, around 23% of total revenue of $306.6 million realized during the period. SHCS recently hired a restructuring adviser and is only partially paying rent owed to MPW. There is also going to be a material non-cash write-off in the upcoming fourth-quarter earnings of consolidated straight-line rent receivables and unpaid rent receivables. Overall, it’s a mess and more impairments relating to SHCS are on the horizon beyond the fourth quarter.

The most preferable outcome for MPW shareholders of the restructuring…