Medical Properties Trust Shares Gain Post Q1 Results; Says Recent Transactions Validate Underwritten Values

Medical Properties Trust Inc MPW reported Q1 2023 revenues of $350.2 million, missing the consensus of $354.6 million.
Net income declined to $32.8 million from $632.7 million a year ago on impairment and other non-cash charges of around $90 million related to the expected sale of hospitals and the absence of rent or interest revenue recognition from Prospect leases or loan investments. The company's 1Q22 net income included an approximate $452 million gain on sale.
Normalized Funds from Operations (NFFO) stood at $0.37, below $0.47 a year ago but above the consensus of $0.22.
In March, MPW announced the divestiture of the Healthscope portfolio in Australia for AUD$1.2 billion to repay Australian term loan.
Also, last month, the company received a notice from Prime Healthcare for exercising their right to repurchase three hospitals in Kansas and Texas in Q3 for around $100 million.
This month, MPW added five behavioral health facilities operated by Priory Group in the U.K. to its existing portfolios for around £44 million and spent about £70 million on three MEDIAN post-acute facilities in Germany.
The company's regular quarterly dividend of $0.29 per share will be paid on July 13, 2023, to stockholders of record on June 15, 2023.
As of Q1-end, total assets stood at $19.7 billion, including $13.7 billion of general acute care hospitals, $2.5 billion of behavioral health facilities and $1.7 billion of post-acute facilities.
Outlook: MPW now expects NFFO of $1.50 - $1.61 (vs. prior guidance of $1.50-$1.65), compared to the consensus of $1.59.
MPW did not acquire any new hospitals in Q1 and expects acquisitions of around $150 million in H1 2023.
Price Action: MPW shares are trading higher by 8.26% at $8.59 on the last check Thursday.

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