Medical Properties Trust Makes Strategic Asset Sales to Reduce Debt and Boost Share Price
Originally Published 1 year ago — by Seeking Alpha
Medical Properties Trust, a REIT that owns and leases medical properties, saw its shares spike after announcing the sale of its interest in five hospitals in Utah, reducing its debt by $886 million and validating its underwritten lease base. The company also completed another asset sale for $350 million and is aiming for a $2 billion target in asset sales this year. These developments are expected to lower the company's leverage and reduce annual interest expenses, ultimately reducing risk for shareholders. While uncertainties remain regarding its largest tenant, Steward Health Care, the company's progress in improving its financial condition and debt reduction efforts have led to a 'strong buy' rating from investors.