Medical Properties Trust (MPW) Stock

Medical Properties Trust (MPW 2.35%) has been under significant pressure over the past few years. The real estate investment trust (REIT) has had to navigate the bankruptcy of two top tenants and surging interest rates.

Medical Properties Trust faces challenges with Prospect's Chapter 11 bankruptcy, but benefits from Prospect's focus on California, where most leased assets are located. Private equity firms pose systemic risks to the healthcare sector, with bipartisan legislative efforts underway to address these issues. MPW is securing up to $2.5 billion in secured financing to pay off unsecured debt, lowering interest expenses and lifting dividend restrictions. Moody's upgrade followed immediately.

Zacks.com users have recently been watching Medical Properties (MPW) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW) today announced the pricing of the private offering of $1.5 billion in aggregate principal amount of senior secured notes due 2032 (the “USD Notes”) and €1.0 billion aggregate principal amount of senior secured notes due 2032 (the “Euro Notes” and together with the USD Notes, the “Notes”) to be issued by its operating partnership, MPT Operating Partnership, L.P., and MPT Finance Corporation, a.

It's been an interesting few years for Medical Properties Trust (MPW 2.63%), and not in a good way. But in this video, longtime Fool.com contributors Matt Frankel and Tyler Crowe discuss why the bleeding might finally have stopped.

In the most recent trading session, Medical Properties (MPW) finished at $4.34, which is an increase of 0.23% compared to the day before.

Prospect's bankruptcy is not a negligible impact, as it can lead to a 10% loss in revenues for MPW. Rent coverage analysis gives reasons for caution with other tenants in MPW's portfolio. Declining revenues in the broader tail of operators shows MPW's issues to be broad-based across the portfolio. A large, fixed-rates debt burden is an overhang. And MPW is relying on higher cost funding in order to raise the money needed for debt principal payments.

The big draw with regard to Medical Properties Trust (MPW 2.25%) today is its lofty 8% dividend yield. But this is a signal of a high level of risk in what amounts to a turnaround story, as the real estate investment trust (REIT) continues to deal with troubled tenants.

Medical Properties Trust's tenant, Prospect Medical, filed for Chapter 11 bankruptcy, but shares rose 7.8% as the market anticipated this and viewed it as de-risking. Despite Prospect's issues, Medical Properties Trust's exposure is limited, with Prospect accounting for only 6.8% of total assets and no recent rent payments. Medical Properties Trust aims to protect its California hospitals and complete the sale of Prospect's Connecticut facilities, expecting minimal impairments on its $509.7 million assets.