Is Medical Properties Trust a Buy?
When it comes to investing in real estate investment trusts (REITs), it pays to have a long-term mindset. Getting a trickle of passive income from dividends is sweet, and even if you invest in a high-yielding stock like Medical Properties Trust (NYSE: MPW), you'll need to wait a while for your investment to pay itself off. And in the meantime, a lot can go wrong -- or right -- to change that payoff calculation significantly.
So is it worth locking up your cash in Medical Properties Trust or will it be better to look elsewhere for passive returns? Let's examine the case for both.
In case the name didn't tip you off, Medical Properties Trust invests in hospital and clinical spaces, which it then rents out to healthcare companies. It also makes joint venture investments in some of its tenants, which often positions it to make profitable property sales in hot real estate markets for healthcare spaces, such as Massachusetts. As of the second quarter, 75.5% of its revenue was sourced from its leases to general hospitals.
Source Fool.com
