In normal market conditions or with interest rates stable or falling, I'd agree with you. But with interest rates beginning a hefty ascent and other high-quality REITs paying 7% yields, the shares have competition. Interest rates have not peaked--not by a long shot. So with heavy debt on the books and an 8.5 ratio, MPW will face higher interest costs as it refinances debt in months and years ahead. Money going into interest does not go into future earnings and dividends. So the secondary does not cure all of the roadblocks facing the company. We have owned and sold at higher level, but have no desire to get back in until we see more stability. Even so, we are not short the shares.
Definately not a barn burner I agree. But dividend wise, they pay a competive rate compared to other Health Care REIT's. In addition to the secondary they also issued senior notes now before the rates get out of hand. P/E is high, but not for a REIT of any stripe. I think they will weather the storm just like the rating agencies said when MPT announced the senior notes.