Medical Properties Trust, Inc. MPW, also known as MPT, announced that it collected 96% of June rent and loan payments, in line with collections made in April and May.
Moreover, the company reached agreements regarding the collection of all deferred amounts, including interest, which were delayed by certain operators amid the COVID-19 pandemic.
Notably, its tenant roster has some of the most profitable and well-capitalized operators in the hospital industry across the United States and international markets. These have likely enabled steadfast rents and loan collections, even through the worst months of the coronavirus pandemic.
Further, the company and its tenants have likely benefited from the financial and operational support provided by governments. These encouraging rent-collection trends, even in unprecedented times, demonstrate resiliency in its portfolio and tenant roster.
Moreover, the company completed its £1.5-billion master lease agreement with Circle Health, a UK-based hospital operator. The lease to Circle Health became effective simultaneously with the approval of an amendment to add a minimum annual cash rent escalator of 2% to the full and extended terms of the agreement.
The company started recognizing the related additional straight-line rent on Jun 16. This will likely boost its top-line growth for the second quarter. Moreover, the lease structure carries a GAAP yield of 8.9% and enhanced the company’s rent growth profile.
It also remains focused on expanding its hospital footprint and in first-quarter 2020, it completed the $2-billion buyout of 30 UK hospitals. Such acquisitions will likely strengthen its portfolio and position it for long-term growth.
Moreover, shares of this Zacks Rank #3 (Hold) company have rallied 4.3% over the past year against the industry’s decline of 4.6%.
Stocks to Consider
Alexander Baldwin Holdings, Inc.’s ALEX Zacks Consensus Estimate for 2020 funds from operations (FFO) per share has been unchanged at 83 cents over the past month. The company currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
City Office REIT, Inc.’s CIO FFO per share estimate for the ongoing year has been unchanged at $1.11 over the past 30 days. The company currently sports a Zacks Rank of 1.
Gladstone Land Corporation’s LAND FFO per share estimate for 2020 has been unchanged at 68 cents over the past month. It currently carries a Zacks Rank of 2 (Buy).
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Medical Properties Trust, Inc. (MPW) : Free Stock Analysis Report
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