Medical Property Trust's stock is currently below $5. They are facing several challenges:
- Recent asset sales: While these sales have increased cash flow, earnings are expected to decline in the short term.
- The disparity between asset sales yield and debt costs: Debt costs have proven to be significantly higher than the yields from asset sales, with figures at -3.4% and -6.5%, respectively.
- Perhaps the most concerning issue is the extended period it will likely take for Medical Properties Trust to recover from its debt, even with cost-cutting measures and further asset sales.
Yet the price is lower than ever.
What's your opinion on this stock?
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