LONDON, UK / ACCESSWIRE / June 12, 2018 / Active-Investors has a free review on Medical Properties Trust, Inc. (NYSE MPW) ("MPT") following the Company's announcement that it will begin trading ex-dividend on June 13, 2018. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on June 12, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on MPW:
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On May 25, 2018, MPT announced that its Board of Directors declared a quarterly cash dividend of $0.25 per share of common stock to be paid on July 12, 2018, to stockholders of record on June 14, 2018.
MPT's indicated dividend represents a yield of 7.16%, which is more than double compared to the average dividend yield of 3.07% for the financial sector. The Company has raised its dividend for four consecutive years.
MPT has a dividend payout ratio of 70.4%, which indicates that the Company distributes approximately $0.70 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, MPT is forecasted to report earnings of $1.06 for the upcoming year compared to the Company's annualized dividend of $1.00. Medical Properties Trust is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization (D&A) to earnings and subtracting any gains on sales which then provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For example, MPT's net income for the first quarter of 2018 was $90.6 million, or $0.25 per diluted share, compared to $68.0 million, or $0.21 per diluted share, in Q1 2017.
On the other hand, the Company's Normalized FFO increased 24% to $131.5 million for Q1 2018 compared to $105.9 million in Q1 2017. The Company's per share NFFO increased 9% to $0.36 per diluted share in Q1 2018 compared to $0.33 per diluted share in Q1 2017. The FFO number indicates that the Company should be able to comfortably cover its dividend payout.
Recent Development for Medical Properties Trust
On May 30, 2018, MPT announced that it has entered into definitive agreements with affiliates of One Equity Partners (OEP) to sell its interest in Ernest Health, Inc. (Ernest). Certain members of Ernest management also agreed to sell the remaining Ernest interests to OEP. Upon closing MPT expects its portion of proceeds to be $175 million and to generate an approximate 13% unlevered internal rate of return on its original $96 million investment.
MPT will continue to own the real estate interests of 25 post-acute hospitals operated by Ernest with an aggregate investment of approximately $500 million, including mortgage loans aggregating $115 million secured by four hospitals. As part of the agreements, MPT has granted Ernest an option to prepay the mortgage debt without penalty, and Ernest has granted to MPT certain preferential rights to future real estate acquisitions.
Stock Performance Snapshot
June 11, 2018 - At Monday's closing bell, Medical Properties Trust's stock slightly fell 0.21%, ending the trading session at $13.93.
Volume traded for the day: 1.32 million shares.
Stock performance in the last month – up 3.65%; previous three-month period – up 5.13%; past twelve-month period – up 4.34%; and year-to-date – up 1.09%
After yesterday's close, Medical Properties Trust's market cap was at $5.08 billion.
Price to Earnings (P/E) ratio was at 16.18.
The stock has a dividend yield of 7.18%.
The stock is part of the Financial sector, categorized under the REIT - Healthcare Facilities industry.
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