Targeted Stock: Medical Properties Trust, Inc.’s (NYSE: MPW)

Shares of Medical Properties Trust, Inc.’s (NYSE: MPW) closed the trading at a price of $16.97 with the positive/negative change of -2.97%. In the past session approximately 12,131,385 shares were exchanged against the average daily trading volume of 2,801,203 shares. The firm touched to the maximum level of $17.43, and it reached the lower level of $16.85 in past session. The stock’s market capitalization has now valued at $6.194B.

Medical Properties Trust, Inc. (MPW) recently reported financial and operating results for the third quarter ended September 30, 2018.

THIRD QUARTER AND RECENT HIGHLIGHTS

  • Net income of $2.00 and Normalized Funds from Operations (“NFFO”) of $0.35 in the third quarter, both on a per diluted share basis;
  • Completed the additions to the master lease of 5 Steward hospitals aggregating $811.4M that were before mortgaged to MPT (including 2 hospitals aggregating $273.7M that were completed in the first half of 2018), substantially improving the credit characteristics of the Steward portfolio;
  • Completed the before reported sale of MPT’s equity investment in Ernest Health, Inc. in October resulting in total proceeds of about $176M;
  • As before reported, completed in August the joint venture with Primonial Real Estate Investment Management (“Primonial”) resulting in total proceeds of about €1.14B, and sold North Cypress Medical Center to Hospital Corporation of America for $148M;
  • Repaid $820M in outstanding revolver debt, resulting in about $1.3B in accessible liquidity from the revolving credit facility and pro forma net debt to EBITDA of about 4.5 times;
  • Completed acquisitions of three of the four before reported German rehabilitation hospitals in August for €16.2M;
  • Completed the before reported acquisition of Lourdes Medical Center in Pasco, Washington in August for $17.5M adding to the existing master lease with RCCH HealthCare Partners.

OPERATING RESULTS AND OUTLOOK

  • Net income for the third quarter of 2018 was $736.0M (or $2.00 per diluted share), contrast to $76.5M (or $0.21 per diluted share) in the third quarter of 2017. The change from 2017’s third quarter primarily results from gains on sales of assets in 2018.
  • NFFO for the third quarter of 2018 raised to $127.2M contrast with $120.6M in the third quarter of 2017. Per share NFFO raised by 6.1% to $0.35 per diluted share in the third quarter of 2018, contrast with $0.33 per diluted share in the third quarter of 2017. The Company achieved the strong growth in per share results even as the above-mentioned asset sales temporarily reduced revenues.
  • Based on management’s present investment, capital and operating strategies, and the predictable timing of each, management estimates that 2018 net income will approximate $2.76 per diluted share and that 2018 NFFO will approximate $1.36 per diluted share.
  • The Company recently is also introducing its estimate of 2019 net income as a range of between $1.01 and $1.05 per diluted share and 2019 NFFO as a range of between $1.42 and $1.46 per diluted share. This estimate assumes, among other estimates, that MPT will make acquisitions throughout 2019 aggregating about $2.0B, while maintaining a conservative debt profile.
  • These estimates do not include the effects, if any, of unpredictable real estate operating costs, changes in accounting pronouncements, litigation costs, debt refinancing costs, acquisition costs, currency exchange rate movements, interest rate hedging activities, write-offs of straight-line rent or other non-recurring or unplanned transactions. These estimates may change if the Company acquires or sells assets, market interest rates change, debt is refinanced, new shares are issued, additional debt is incurred, other operating expenses vary, income from investments in tenant operations vary from expectations, or existing leases do not perform in accordance with their terms.

Analyst recommendation for this stock stands at 3.00. The P/E ratio was recorded at 6.16.The volatility in the previous week has experienced by 2.62% and observed of 1.98% in the previous month.81.30% ownership is held by institutional investors while insiders hold ownership of 1.20%.

 

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