MPW short pitch:
– Medical Properties Trust is a highly-levered US healthcare REIT that owns nearly 440 hospital facilities.
– Company operates a low-quality business (with shady management) that burns cash after dividends and does not earn its cost of capital.
– 2 of its biggest tenants, comprising over 40% of revenue, are in poor financial and operational health – rent cuts are likely.
– Without dividend cuts, accessing capital markets, or selling assets MPW will likely face a liquidity crunch in 2024.
MPW valuation:
– 40% rent cut from major tenant could result in a 50-70% dividend cut.
– Even if there is no rent/dividend cut, capital raise will likely be required to keep FFO flat.
Exp. gain: Not specified.
Full write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/MEDICAL_PROPERTIES_TRUST/1275489434#description