Medical Properties Trust (NYSE:MPW), a REIT involved with medical properties (also known as MPT), recently reported its Q1-2024 earnings results. In a nutshell, efforts to stabilize Steward Health, the REIT’s largest tenant operator, have failed, with the company filing for bankruptcy. As a result, Medical Properties Trust had to write off certain loans and investments it had made to Steward. Even so, Medical Properties Trust remains attractively priced relative to peers, with a rebound in operating performance expected once Steward-operated hospitals change to new operators later this year.
I am bullish on the stock due to its attractive valuation on a firm-wide basis and the defensive nature of its hospital portfolio. Nevertheless, investors need to be mindful of its high leverage and the need for management to preserve liquidity.
