Medical Properties Trust: The Case For A Turnaround (Rating Upgrade)

  • Portfolio rent coverage metrics are improving and may continue to do so, aided by Medicaid budget cuts which may lead to more funding for acute care hospitals, benefiting MPW's portfolio. MPW is rebuilding via new hospital tenant additions that have good financial standing. This can lead to a recovery in revenues along with improved cash conversion that is already happening. MPW stock's valuations are attractively placed at a deep discount, both vs its comps and vs its own historical trading multiples.