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Medical Properties Trust’s (NYSE:MPW) Q4 earnings came in better than feared on Wednesday, while a charge related to a struggling tenant put its quarterly revenue in the red. MPW stock dropped 3.1% in premarket trading.
The company, also knowns as MPT, didn’t provide guidance for 2024 due to the uncertainty regarding its hospitals leased to Steward Health Care System, which has been struggling to pay its rent.
The REIT and certain of Steward’s asset-backed lenders are negotiating a new bridge loan. It’s expected, but not assured, that each party will fund an initial $37.5M to Steward, based on its achievement of certain milestones, previously established in January. MPT has already funded $20M of its amount. Any subsequent loan fundings would be based on Steward achieving “further significant milestones that optimize the amount an timing of recoveries for MPT and Steward’s ABL lenders,” Medical Properties said.
In January, MPW granted Steward a $60M bridge loan. At the time, the REIT said it would record a charge of ~$225M in straight-line rent receivables and other items.
Medical Properties’ (MPW) Q4 normalized FFO per share of $0.36, topping the $0.29 consensus estimate, fell from $0.38 in Q3 and $0.43 in Q4 2022. The
Total revenue of -$122M plunged from $306.6M in the prior quarter and $380.5M a year ago. Q4 2023 revenue reflects a $166.8M charge in straight-line rent and -$53.4M of interest and other income.
Q4 expenses of $213.1M declined from $229.1M in Q3 and $224.1M in Q4 2022.
Conference call at 12:00 PM ET.
Earlier, Medical Properties reports mixed results; suspends guidance
