Why Medical Properties Trust Stock Is Crashing Today
Shares of Medical Properties Trust (NYSE: MPW) were crashing 29.7% lower as of 10:20 a.m. ET on Friday. The steep decline came after the company provided an update following the market close on Thursday about its tenant, Steward Health Care System.
Steward recently told Medical Properties Trust that "its liquidity has been negatively impacted by significant changes to vendors' payment terms." Because of this, Steward's total unpaid rent rose to around $50 million as of the end of 2023. The hospital operator is also continuing to make only partial monthly rent payments.
Medical Properties Trust said that it has engaged a financial advisor and a law firm to advise it on options to collect the money that Steward owes. The real estate investment trust (REIT) has agreed to fund a $60 million bridge loan to Steward and defer unpaid rent. It also plans to write off around $225 million in rent in the fourth quarter of 2023.
Source Fool.com
