For many valid reasons, Medical Property Trust (NYSE: MPW) has generally been an unpopular stock this year. You wouldn’t think so by looking at the real estate investment trust’s (REIT) performance on Thursday, however, as its price rose more than 5% on news of a major divestment. That performance easily outpaced that of S&P 500which increased by 1.6% on the day.
A sale of major assets
Just after the market opened Wednesday, Medical Properties Trust announced it had completed the sale of 11 of its properties. The properties are located in Colorado and were purchased by University of Colorado Health for $86 million.
In exchange for its money, University of Colorado Health receives 11 independent health care properties in the western part of the state. These include primary care and emergency facilities, among other structures. The development of the properties was financed by Medical Properties Trust between 2015 and 2017 for Adeptus Health. After that company filed for bankruptcy, University of Colorado Health began leasing the facilities.
The REIT said the total initial cost of the 11 properties was $64 million, giving it a good result on the sale.
It added that it would use the proceeds from the transaction to repay debt and for “general corporate purposes.” It did not provide further details.
Improve finances
Medical Properties Trust was a company that needed some good news to tell its shareholders. That’s because earlier this month it hit the third rail of FPI By cutting its dividend, this decision did not come as a shock given the significant challenges the company is facing. Indeed, since it is a real estate investment company, many shareholders invested in it solely because of the dividend. Hopefully, for them, the sale of assets in Colorado will be one of many measures that will help significantly improve the company’s finances.
Should You Invest $1,000 in Medical Properties Trust Right Now?
Before you buy shares of Medical Properties Trust, consider the following:
THE Motley Fool, Securities Advisor The team of analysts has just identified what they believe to be the 10 best stocks Investors need to buy now…and Medical Properties Trust isn’t one of them. These 10 stocks could deliver monstrous returns in the years to come.
Consider when Nvidia I made this list on April 15, 2005… if you had $1,000 invested at the time of our recommendation, you would have $723,545!*
Securities Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building advice, regular analyst updates and two new stock picks each month. Securities Advisor the service has more than quadrupled the return of the S&P 500 since 2002*.
*Stock Advisor returns as of August 12, 2024
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Medical Properties Trust Stock Crashed the Market Today was originally published by The Motley Fool
Discover more from The Times Of Update
Subscribe to get the latest posts sent to your email.
