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MPW

Medical Properties Trust NYSE:MPW Stock Report

Last Price

US$11.44

Market Cap

US$6.9b

7D

-11.4%

1Y

-43.0%

Updated

29 Sep, 2022

Data

Company Financials +

Medical Properties Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Medical Properties Trust
Historical stock prices
Current Share PriceUS$11.44
52 Week HighUS$24.13
52 Week LowUS$11.35
Beta0.82
1 Month Change-20.67%
3 Month Change-26.85%
1 Year Change-43.00%
3 Year Change-40.76%
5 Year Change-13.20%
Change since IPO4.00%

Recent News & Updates

Sep 19

Medical Properties Trust: Far Safer Than Bears Claim

Summary Among the more controversial REITs based on concerns over transparency and tenant weakness. Even though analysts are generally Bullish, bears growl loudly over risk and reporting issues. We take a deep dive to conclude MPW is far safer than bears claim. MPW is a Buy today. Poor old beaten down Medical Properties Trust (MPW). The market shows no love and many analysts have questions about transparency, risk, and credibility. Let's lay out the swirling issues: None of MPW's largest tenants are publicly traded and none report financial information; Steward, among the largest hospital operators in the US, struggles so regularly that maybe their operating model is a risk; Prospect Medical Holdings, MPW's second largest tenant, has reportedly struggled during Q1 2022; MPW has to make investments in and loans to some of its tenants based on tenant weakness; Hospitals have largely regained their pre-pandemic footing with respect to demand, however, labor and inflationary pressures have created new challenges based on HCA Healthcare's (HCA) Q2 earnings call which is our proxy for the current hospital operating environment; and MPW limits most of its disclosures to what is required rather than pushing as hard as analysts would like in disclosing more tenant operating information. Sounds like a perfect stew for fear, skepticism, and doubt to congeal into distrust. MPW's stock price discount when compared to other REITs certainly confirms this. In making our comparison, we recognize that no other REIT has as dominant a position in hospital real estate, so we use the following indirect competitors: Healthcare Realty Trust (HR), Omega Healthcare Investors (OHI), Physicians Realty Trust (DOC), Sabra Health Care (SBRA), and National Health Investors (NHI). Ticker Price/Book ((TTM)) Price/AFFO ((TTM)) MPW .93x 9.64x HR 1.60 16.2 OHI 1.9 10.45 DOC 1.29 15.97 SBRA .95 9 NHI 1.99 13.94 Source: SA Our valuation measures will be familiar to most REIT investors. Price/Book gives us a trailing 12 months Net Asset Value discount or premium while Price/AFFO (Adjusted Funds From Operations) gives us the cap rate or implied yield from the portfolio on a cash flow basis. To eliminate an overly skewed comparison, we knockout the high and low comparisons to see how things cluster. SBRA is too low for Price/Book and Price/AFFO and also, we wipe away NHI's Price/Book and HR's Price/AFFO to give us the following comparison: Ticker Price/Book ((TTM)) Price/AFFO ((TTM)) MPW .93 9.64 Average 1.6 13.45 Is this discount deserved? Investment Thesis Medical Properties Trust holds a unique position in REITland as the largest owner of hospital real estate. One could argue over the past three years that no one really wanted hospital risk, but is that a permanent downward shift in asset value? We don't think so. Rather, we see the aftereffects of market disruption working its way through the healthcare industry. Hospitals, in our opinion, are a special class of community assets - they are typically large footprint aircraft carriers around which a host of escort buildings develop to create a healthcare armada in a central location. Patients then cluster around the area because the hospital provides many services the satellite services cannot. Thus, all things being equal, we would ascribe an asset premium to hospitals over skilled nursing, drug abuse and other ancillary healthcare services that can exist both near hospitals and in communities lacking hospitals. Ancillary healthcare services like doctors' offices and acute care facilities move around more easily because they do not require the same real estate footprint or even to be purpose built. It's not unusual to find several competing buildings near a hospital or in developed medical centers or campuses that have been renovated from a prior use. Competition mobility among ancillary health service providers, in our view, makes it a riskier real estate sector than hospitals, so what is MPW doing wrong? Under The Hood We can get a better idea by looking at some financial metrics among our comparable competitors (all on a TTM basis): Ticker AFFO Margin AFFO Payout Ratio Interest Coverage Rents/ Avg. Gross Properties Return On Total Assets Leverage Ratio MPW 55.05% 82.12% 3.02x 11.64% 6.07% 53.35% HR 101.41 86.19 1.44 11.81 1.49 50.42 OHI 64.15 96.13 2.27 11.64 4.74 57.41 DOC 49.29 89.82 1.82 9.74 1.53 40.47 SBRA 61.24 81.20 .42 7.36 0.73 42.78 NHI 67.19 80.72 2.73 9.42 2.60 43.87 Source: SA If we knockout the high and low AFFO Margins given their wide swings, we get an average around 64%, materially higher than MPW's 55%. We can see MPW is in line and prudent with respect to its payout ratio to shareholders, and we judge this rate as sustainable within the REIT industry. Confoundingly, MPW has a low cash flow margin but the best interest coverage on a relatively higher leverage ratio. The answer is that MPW creates more revenue per asset, which also explains MPWs superior return on assets. Higher overall cash flow at a lower profit margin can offset higher margin returns on other assets, and MPW cash is benefitting from some exotic deals by normal healthcare REIT standards. MPW doesn't just receive among the highest lease payment on their facilities based on rents/avg. gross properties, above, they also get kickers and provide financing with secured loans. Providing mortgage loans is not unusual but MPW also makes asset backed loans secured by hospital receivables from US government programs - super safe. And they take equity pieces from time to time to fill the gap when MPW likes the deal risk. These little extras create more cash flow per asset with a balance of risks - the equity kickers are obviously the riskiest cash flow and those loans are secured against real and valuable assets. When we consider how much MPW is squeezing from their average asset, we can see why they sustain a higher leverage ratio than its peers with the best interest coverage in our comparison set. We are not seeing a big problem here other than operator default risk, which is admittedly hard to measure when all we have is what MPW management tells us their operators told them - not good for predicting that risk. Tenant Default Risk If I look for the fear hole down which the stock has traveled this year, I think this is it. Is the risk overblown? MPW has several advantages: Focus on hospital real estate plus supporting ancillary real estate; Master lease structure for largest tenant groups; Reduced tenant concentration and debt leverage this year; and Long experience in the sector.

Aug 29

Medical Properties Trust says LifePoint Health to acquire majority stakes in Springstone at $250M valuation

Medical Properties Trust (NYSE:MPW) notified Monday that LifePoint Health's (OTC:LFPI) subsidiary seeks to acquire majority stakes in Springstone Health Opco at the enterprise value of $250M. Upon closing of the transaction, Medical Properties Trust expects to receive $200M in full satisfaction of the loan and retain its minority equity interest, which it acquired in Oct. 2021 at $190M investment in the form of loan. This relates to investment made in conjunction with Medical Properties Trust's $760M acquisition of Springstone's 18 behavioral hospitals. Closing of LifePoint Health's transaction is expected in H1 2023. Medical Properties Trust said it will continue to own and lease Springstone’s behavioral hospitals. Also, in order to align MPT more completely with its operations, LifePoint has agreed to extend by five years to 2041 the maturity of its existing master lease of eight general acute hospitals.

Shareholder Returns

MPWUS REITsUS Market
7D-11.4%-6.4%-3.1%
1Y-43.0%-20.3%-21.5%

Return vs Industry: MPW underperformed the US REITs industry which returned -19.2% over the past year.

Return vs Market: MPW underperformed the US Market which returned -20.3% over the past year.

Price Volatility

Is MPW's price volatile compared to industry and market?
MPW volatility
MPW Average Weekly Movement4.1%
REITs Industry Average Movement4.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: MPW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MPW's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003112Ed Aldaghttps://www.medicalpropertiestrust.com

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world’s largest owners of hospitals with 431 facilities and roughly 43,000 licensed beds in nine countries and across four continents on a pro forma basis. MPT’s financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations.

Medical Properties Trust Fundamentals Summary

How do Medical Properties Trust's earnings and revenue compare to its market cap?
MPW fundamental statistics
Market CapUS$6.85b
Earnings (TTM)US$1.20b
Revenue (TTM)US$1.65b

5.7x

P/E Ratio

4.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MPW income statement (TTM)
RevenueUS$1.65b
Cost of RevenueUS$44.69m
Gross ProfitUS$1.60b
Other ExpensesUS$404.81m
EarningsUS$1.20b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.00
Gross Margin97.29%
Net Profit Margin72.70%
Debt/Equity Ratio114.4%

How did MPW perform over the long term?

See historical performance and comparison

Dividends

10.1%

Current Dividend Yield

64%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MPW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MPW?

Other financial metrics that can be useful for relative valuation.

MPW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue10.2x
Enterprise Value/EBITDA11.5x
PEG Ratio-0.5x

Price to Earnings Ratio vs Peers

How does MPW's PE Ratio compare to its peers?

MPW PE Ratio vs Peers
The above table shows the PE ratio for MPW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average58.5x
OHI Omega Healthcare Investors
14.9x-3.3%US$6.9b
HR Healthcare Realty Trust
119.4x34.6%US$7.8b
PEAK Healthpeak Properties
57.2x5.2%US$12.4b
DOC Physicians Realty Trust
42.7x3.8%US$3.5b
MPW Medical Properties Trust
5.7x-12.3%US$6.9b

Price-To-Earnings vs Peers: MPW is good value based on its Price-To-Earnings Ratio (5.7x) compared to the peer average (58.5x).


Price to Earnings Ratio vs Industry

How does MPW's PE Ratio compare vs other companies in the US REITs Industry?

Price-To-Earnings vs Industry: MPW is good value based on its Price-To-Earnings Ratio (5.7x) compared to the US REITs industry average (26.6x)


Price to Earnings Ratio vs Fair Ratio

What is MPW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MPW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.7x
Fair PE Ratio27.5x

Price-To-Earnings vs Fair Ratio: MPW is good value based on its Price-To-Earnings Ratio (5.7x) compared to the estimated Fair Price-To-Earnings Ratio (27.5x).


Share Price vs Fair Value

What is the Fair Price of MPW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MPW ($11.44) is trading below our estimate of fair value ($32.82)

Significantly Below Fair Value: MPW is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Medical Properties Trust forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-12.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPW's earnings are forecast to decline over the next 3 years (-12.3% per year).

Earnings vs Market: MPW's earnings are forecast to decline over the next 3 years (-12.3% per year).

High Growth Earnings: MPW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MPW's revenue (3.9% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: MPW's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MPW's Return on Equity is forecast to be low in 3 years time (7.9%).


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Past Performance

How has Medical Properties Trust performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


13.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MPW has a large one-off gain of $488.5M impacting its June 30 2022 financial results.

Growing Profit Margin: MPW's current net profit margins (72.7%) are higher than last year (36.1%).


Past Earnings Growth Analysis

Earnings Trend: MPW's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: MPW's earnings growth over the past year (131.3%) exceeds its 5-year average (13.5% per year).

Earnings vs Industry: MPW earnings growth over the past year (131.3%) exceeded the REITs industry 45.8%.


Return on Equity

High ROE: MPW's Return on Equity (13.5%) is considered low.


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Financial Health

How is Medical Properties Trust's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MPW's short term assets ($3.4B) exceed its short term liabilities ($562.3M).

Long Term Liabilities: MPW's short term assets ($3.4B) do not cover its long term liabilities ($10.3B).


Debt to Equity History and Analysis

Debt Level: MPW's net debt to equity ratio (111.5%) is considered high.

Reducing Debt: MPW's debt to equity ratio has increased from 84.5% to 114.4% over the past 5 years.

Debt Coverage: MPW's debt is not well covered by operating cash flow (7.8%).

Interest Coverage: MPW's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


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Dividend

What is Medical Properties Trust current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


10.14%

Current Dividend Yield

Dividend Yield vs Market

Medical Properties Trust Dividend Yield vs Market
How does Medical Properties Trust dividend yield compare to the market?
SegmentDividend Yield
Company (Medical Properties Trust)10.1%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (REITs)4.1%
Analyst forecast in 3 Years (Medical Properties Trust)10.6%

Notable Dividend: MPW's dividend (10.14%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: MPW's dividend (10.14%) is in the top 25% of dividend payers in the US market (4.61%)


Stability and Growth of Payments

Stable Dividend: MPW's dividends per share have been stable in the past 10 years.

Growing Dividend: MPW's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (63.6%), MPW's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (87.9%), MPW's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.7yrs

Average management tenure


CEO

Ed Aldag (58 yo)

18.5yrs

Tenure

US$17,036,629

Compensation

Mr. Edward K. Aldag, Jr., also known as Ed, is a Founder of Medical Properties Trust, Inc. and has been its President and Chief Executive Officer since August 2003. He serves as Director of Infracore SA si...


CEO Compensation Analysis

Ed Aldag's Compensation vs Medical Properties Trust Earnings
How has Ed Aldag's remuneration changed compared to Medical Properties Trust's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$1b

Mar 31 2022n/an/a

US$1b

Dec 31 2021US$17mUS$1m

US$654m

Sep 30 2021n/an/a

US$558m

Jun 30 2021n/an/a

US$517m

Mar 31 2021n/an/a

US$512m

Dec 31 2020US$17mUS$1m

US$429m

Sep 30 2020n/an/a

US$449m

Jun 30 2020n/an/a

US$408m

Mar 31 2020n/an/a

US$378m

Dec 31 2019US$17mUS$1m

US$372m

Sep 30 2019n/an/a

US$319m

Jun 30 2019n/an/a

US$966m

Mar 31 2019n/an/a

US$998m

Dec 31 2018US$13mUS$1m

US$1b

Sep 30 2018n/an/a

US$1b

Jun 30 2018n/an/a

US$349m

Mar 31 2018n/an/a

US$311m

Dec 31 2017US$8mUS$950k

US$288m

Sep 30 2017n/an/a

US$260m

Jun 30 2017n/an/a

US$254m

Mar 31 2017n/an/a

US$235m

Dec 31 2016US$6mUS$950k

US$224m

Sep 30 2016n/an/a

US$240m

Jun 30 2016n/an/a

US$192m

Mar 31 2016n/an/a

US$161m

Dec 31 2015US$6mUS$950k

US$139m

Compensation vs Market: Ed's total compensation ($USD17.04M) is above average for companies of similar size in the US market ($USD8.58M).

Compensation vs Earnings: Ed's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MPW's management team is seasoned and experienced (6.7 years average tenure).


Board Members

Experienced Board: MPW's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:MPW Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
07 Apr 22SellUS$5,996,400R. HamnerIndividual285,000US$21.04
30 Mar 22SellUS$13,117,950Edward AldagIndividual615,000US$21.33
10 Mar 22SellUS$121,560Michael StewartIndividual6,000US$20.26

Ownership Breakdown

What is the ownership structure of MPW?
Owner TypeNumber of SharesOwnership Percentage
State or Government251,2280.04%
Individual Insiders7,918,0861.3%
General Public97,424,50916.3%
Institutions493,245,17782.4%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 60.19% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
14.51%
The Vanguard Group, Inc.
86,898,838$994.1m-0.17%0.02%
12.32%
BlackRock, Inc.
73,797,982$844.2m-9.03%0.02%
5.93%
State Street Global Advisors, Inc.
35,500,479$406.1m-1.82%0.02%
4.73%
Wellington Management Group LLP
28,352,457$324.4m-0.28%0.06%
3.39%
Principal Global Investors, LLC
20,309,433$232.3m-4.35%0.17%
2.39%
BNY Mellon Asset Management
14,296,923$163.6m10.04%0.04%
1.67%
Geode Capital Management, LLC
10,012,982$114.5m-0.41%0.02%
1.35%
Dimensional Fund Advisors LP
8,087,128$92.5m-0.74%0.02%
1.26%
CenterSquare Investment Management LLC
7,532,433$86.2m48.82%1.27%
1.1%
Sarasin & Partners LLP
6,617,088$75.7m25.96%0.58%
1.02%
Northern Trust Global Investments
6,116,114$70.0m-4.3%0.02%
1.01%
Legal & General Investment Management Limited
6,045,730$69.2m9.98%0.02%
1%
Charles Schwab Investment Management, Inc.
5,983,455$68.5m-0.8%0.02%
0.97%
Norges Bank Investment Management
5,801,792$66.4m0%0.01%
0.85%
Cardinal Capital Management, L.L.C.
5,063,136$57.9m-1.57%2.06%
0.77%
Balyasny Asset Management L.P.
4,591,619$52.5m108.77%0.25%
0.76%
Columbia Management Investment Advisers, LLC
4,536,058$51.9m1.02%0.02%
0.74%
AllianceBernstein L.P.
4,408,640$50.4m13.44%0.02%
0.7%
UBS Asset Management
4,175,006$47.8m-8.64%0.01%
0.67%
Nikko Asset Management Co., Ltd.
4,016,015$45.9m16.33%0.02%
0.67%
LSV Asset Management
4,007,723$45.8m-0.48%0.1%
0.65%
Morgan Stanley, Investment Banking and Brokerage Investments
3,878,012$44.4m12.35%0.01%
0.6%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
3,612,639$41.3m199.15%0.01%
0.58%
Edward Aldag
3,474,270$39.7m-0.66%no data
0.55%
FMR LLC
3,314,331$37.9m-74.37%no data

Company Information

Medical Properties Trust, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Medical Properties Trust, Inc.
  • Ticker: MPW
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Implied Market Cap: US$6.851b
  • Market Cap: US$6.851b
  • Shares outstanding: 598.84m
  • Website: https://www.medicalpropertiestrust.com

Number of Employees


Location

  • Medical Properties Trust, Inc.
  • 1000 Urban Center Drive
  • Suite 501
  • Birmingham
  • Alabama
  • 35242
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPWNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2005
M3PDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2005
0JZZLSE (London Stock Exchange)YesCommon StockGBUSDJul 2005
MPW *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2005
M2PW34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLApr 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.