Medical Properties Trust(US:MPW) The Motley Fool·2025-02-28 09:45Core Viewpoint - Medical Properties Trust has improved its financial health after facing significant challenges, including tenant bankruptcies and rising interest rates, by securing $5.5 billion in liquidity and diversifying its tenant base [1][2][13]. Financial Actions - The company aimed to raise at least $2 billion in liquidity to address upcoming debt maturities, which was difficult due to financial troubles with its largest tenants and high interest rates [3]. - Medical Properties Trust sold properties to financially stronger tenants, including a $350 million sale to Prime Healthcare and a $1.1 billion sale of a 75% stake in a hospital portfolio in Utah [4]. - The REIT refinanced maturing debt through an $800 million loan secured by U.K. hospitals at a 6.9% fixed interest rate, and issued $1.5 billion in senior secured notes at an 8.5% rate and €1 billion (about $1 billion) at a 7% rate [5][6]. Liquidity and Debt Management - The total liquidity secured amounts to $5.5 billion, allowing the company to repay all debt maturing through next year, alongside $1.4 billion in cash and credit line availability [7]. Tenant and Portfolio Recovery - Medical Properties Trust replaced its bankrupt tenant Steward with five new operators, who are reporting improved performance metrics and have begun paying rent, which will stabilize by the end of 2026 [9]. - Following Prospect's bankruptcy, a settlement is in place for the sale of its hospitals, which will help resolve tenant issues [10]. - The overall hospital portfolio is performing well, with European hospitals benefiting from strong reimbursement trends and U.S. hospitals seeing increased admissions and surgical volumes [11]. Future Outlook - The company is now positioned to pursue growth opportunities, including new investments, share repurchases, and rebuilding its dividend after previous cuts, which could lead to strong total returns in 2025 and beyond [13][14].