Medical Properties Trust has sold the majority of its interests in five Utah hospitals for $886 million to an unspecified investment firm’s joint venture, while also receiving a $190 million non-recourse secured loan. This comes after the recent sale of five hospitals to Prime Healthcare for $350 million. The company is aiming to free up liquidity following financial challenges related to its exposure to Steward Health Care's financial instability, which led to a net loss of $556 million for fiscal year 2023. With the Utah deal closed, MPT's CEO is confident that the company will exceed its $2 billion liquidity threshold.
The article discusses the risks of putting a third of one's money into a single real estate investment trust (REIT) and emphasizes the importance of diversification. The author advises against such concentrated investments and suggests holding a diversified portfolio of REITs to mitigate risks. The article also provides insights into three potential REITs for consideration, including Rexford Industrial Realty, Inc. (REXR), Alexandria Real Estate Equities, Inc. (ARE), and VICI Properties Inc. (VICI), and hints at an upcoming "Sweet 16 REIT" portfolio list.
Annaly Capital Management (NLY) reported Q4 earnings of $0.68 per share, surpassing the estimated $0.64 per share. However, the company's revenues fell short of expectations. The stock's future performance is expected to underperform the market, as indicated by the Zacks Rank #4 (Sell) due to unfavorable estimate revisions. The industry's outlook also plays a significant role in the stock's performance, with the REIT and Equity Trust industry currently ranking in the bottom 19% of Zacks industries.
Medical Properties Trust has sold $105 million of its interest in Steward Health Care System's syndicated asset-backed credit facility to a global asset manager. The divestment reflects the company's focus on reducing leverage and the strong participation interest from third-party lenders. Medical Properties Trust is a real estate investment trust that acquires and develops net-leased hospital facilities.
Investing $94,000 in five high-yield stocks, including Medical Properties Trust, Pioneer Natural Resources, Ares Capital, Energy Transfer LP, and Devon Energy, could generate over $10,000 in annual dividend income. These stocks offer dividend yields ranging from 9.5% to 12.7%. While there are risks associated with investing in stocks, these companies have solid prospects if the U.S. economy remains stable. However, investors should exercise caution as stock prices can fluctuate and potentially offset dividend income.
Jim Cramer warns investors about Annaly Capital Management Inc., a high-yield stock with a 14% annual yield, calling it a trap due to its poor performance. Instead, he suggests three dividend plays that Wall Street finds attractive: Realty Income Corp., a REIT with a 5.1% annual yield; FirstEnergy Corp., an electric utility with a 4% annual yield; and Energy Transfer LP, which owns a large portfolio of energy assets and offers a 9.7% annual yield.
Sam Zell, a legendary real estate investor and founder of Equity Residential, has died at 81. Zell was known for his appetite for buying distressed real estate for a profit and is credited with popularizing the real estate investment trust. He founded the predecessor company to Equity Residential while a student at the University of Michigan and built a net worth of $5.2 billion, according to Forbes.
Extra Space Storage has agreed to acquire Life Storage for $12.7 billion, creating the largest operator of storage space in the US by number of locations and challenging industry leader Public Storage. The deal is expected to generate at least $100 million in annual savings and improved property revenue.
