Why Medical Properties Trust Stock Zoomed 5% Higher Today
Exactly one week after Valentine's Day, beleaguered real estate investment trust (REIT) Medical Properties Trust (NYSE: MPW) earned a little love on the stock market. Investors pushed the company's share price up by more than 5%, topping the S 500 index's marginal gain, following the release of quarterly and full-year results.
In its fourth quarter, Medical Properties Trust posted negative revenue of $122 million, quite a shift from the year-ago positive result of $380 million. This unusual development occurred because of write-offs of rent and related line items for Steward Health. This is a major tenant for the REIT that has been experiencing significant liquidity problems, and remains behind on rent payments.
The Steward situation also affected the REIT's profitability. The company said its normalized funds from operations (NFFO) sank to $218 million ($0.36 per share); the fourth quarter 2022 figure was $258 million.
Source Fool.com
