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:
If your portfolio includes dividend stocks, you have come to the right place for timely information. All you need to do is sign up for your free membership at:
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.
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.