Medical Properties Trust - MPW

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Medical Properties Trust, Inc. is a real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world's largest owners of hospitals with 389 facilities and more than 41,000 licensed beds in eight countries and across three continents.


MPW is a pretty diversified hospital REIT with an attractive dividend at this price (almost at 6% while the stock trades just above $18). They grew rapidly last year and you have to like the predictability of their income streams in Europe and Australia where there is a single-payer healthcare system.


They have steadily grown the dividend (faster than inflation) and with the big acquisitions last year there is a lot of promise for them. The stock fell off a pre-pandemic high of $24 to a low of $13 in mid March and trades in the $18 range as I write this. I waited for some clarity before buying this one to make sure they were still able to collect rent due to the pandemic. With 96% of rent collected from March to June they seem to be okay.


With interest rates so low you'd have to think almost a 6% yield would be attractive to investors. Above $19 you're probably starting to push the limits but at $18 it's attractive enough for me to start a position and add if it drops back down to the March lows. I bought this for clients and myself at the end of last week in the $18-$18.50 range.

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