Why Medical Properties Trust Stock Popped Today

Shares of Medical Properties Belief (NYSE: MPW) soared 18.6% on Wednesday after the biggest tenant of the healthcare facilities-focused actual property funding belief (REIT) introduced a deal to promote its physician community to UnitedHealth (NYSE: UNH) subsidiary Optum.

Medical Properties’ largest tenant could lastly be capable of pay its payments

In a narrative first reported by the Boston Globe late yesterday, beleaguered hospital operator Steward Well being Care has struck a deal to divest its nationwide doctor community to UnitedHealth’s Optum phase. The precise phrases of the deal weren’t disclosed. However contemplating Steward Well being Care hasn’t been paying its hire to Medical Properties Belief because it has grappled with monetary hardship in latest quarters — and matched with the very fact Steward beforehand represented as a lot as 20% of Medical Properties Belief’s whole income — Medical Properties Belief shares are understandably rallying given the prospect that Steward might atone for its past-due obligations.

Medical Properties Belief beforehand diminished its dividend in August by almost 50% to $0.15 per share on account of Steward Well being Care’s lack of ability to pay its hire. In a January replace, Medical Properties Belief revealed Steward owed a complete of $50 million in unpaid hire to the REIT on the finish of 2023.

What’s subsequent for Medical Properties Belief buyers?

Steward Well being Care’s settlement is not a completed deal simply but; the deal is extensively anticipated to obtain pushback from antitrust regulators who fear that Optum’s latest acquisitive streak might threaten competitors throughout the nation.

But when this deal passes regulatory muster, it might signify an enormous boon for Medical Properties Belief buyers who’ve watched helplessly as their firm’s single largest tenant missed its important hire funds.

Must you make investments $1,000 in Medical Properties Belief proper now?

Before you purchase inventory in Medical Properties Belief, think about this:

The Motley Idiot Inventory Advisor analyst staff simply recognized what they imagine are the 10 finest shares for buyers to purchase now… and Medical Properties Belief wasn’t one in every of them. The ten shares that made the reduce might produce monster returns within the coming years.

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Steve Symington has no place in any of the shares talked about. The Motley Idiot recommends UnitedHealth Group. The Motley Idiot has a disclosure coverage.

Why Medical Properties Belief Inventory Popped Immediately was initially revealed by The Motley Idiot

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