top partner

for CFD

What happened

The stock market was trading relatively flat on Tuesday morning, but Medical Properties Trust (NYSE: MPW) was a major underperformer. As of 11:45 a.m. ET, the real estate investment trust (REIT) had lost more than 4% following a sharp decline on Monday.

So what

Tuesday’s downward move appears to be a continuation of the fallout from Medical Properties Trusts’ long-anticipated dividend cut and other recent negative news.

On Friday, The Wall Street Journal reported that Medical Properties Trust’s deal to provide financial support to one of its struggling tenants had been put on hold in July by a California regulator — news which wasn’t previously disclosed to investors. If the deal is ultimately blocked by the regulator, that would deal a financial blow to an already delicate Medical Properties Trust. Company management pushed back and said that the hold was standard and expected, and that the deal is still expected to close.

Then on Monday, Medical Properties Trust made a move that had been widely expected by investors for some time — it slashed its dividend nearly in half. The company said that it would explore options to pay down debt (a lingering problem), including selling some of its properties.

Now what

For one thing, it’s important to note that even after the dividend cut, at the current share price, Medical Properties Trust still has a dividend yield of nearly 9%. While the company still has some work to do to get back on solid financial footing, the payout cut was certainly a prudent move, and if management can successfully complete the deal with its tenant and reduce its leverage, the healthcare REIT could have a bright future.

10 stocks we like better than Medical Properties Trust
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Medical Properties Trust wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of August 21, 2023

Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Read the full story: Read More“>

Blog powered by G6

Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.

For any inquiries, please contact [email protected]