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4 Reasons to Add Medical Properties Stock to Your Portfolio

Core Insights - Medical Properties Trust (MPW) focuses on acquiring and developing net-leased healthcare facilities, including general acute care hospitals and behavioral health facilities [1] - The stock has gained 14% in the past six months, outperforming the industry growth of 5.3%, indicating strong fundamentals and positive estimate revisions [2] Industry Fundamentals - The aging population is expected to increase healthcare expenditures, particularly among senior citizens, who represent a significant customer base for healthcare services [3] - The healthcare sector is relatively insulated from macroeconomic challenges, providing stability amid market volatility as consumers prioritize healthcare spending over discretionary purchases [4] Company Strategy - MPW leases facilities to healthcare operating companies with initial fixed lease terms of at least 15 years, most including five-year renewal options, and over 99% of leases have annual rent escalations based on the Consumer Price Index [5] - The company employs a capital recycling strategy, disposing of non-core assets to reinvest in premium acquisitions and development projects, thereby enhancing its financial position [6] Recent Developments - In Q1 2025, MPW sold two facilities and an ancillary facility for approximately $20 million, resulting in a gain of $8.1 million, which improves its financial position and addresses tenant concerns [7][9] - As of May 7, 2025, MPW had approximately $1.3 billion in liquidity, with no debt maturities due in the next 12 months, providing financial flexibility for growth [10]