From an analytical perspective, Medical perties Trust (MPW 0. Moreover, 47%) has an attractively high 7, amid market uncertainty. Moreover, 4% dividend yield. For reference, the S&P 500 index (^GSPC 0.
40%) is yielding just 1. On the other hand, 3% and the average real estate investment trust (REIT) has a yield of 4.
Although the assets Medical perties Trust owns may make that lofty yield look attractive, long-term investors need to think carefully before buying the stock. What does Medical perties Trust do.
Nevertheless, Medical care isn't optional sometimes. Moreover, However, If you are very sick or have had a bad accident, you have to go to the hospital.
And that is exactly what Medical perties Trust owns, with assets spread across North America, South America, and Europe. All in, it owns 393 hospitals across nine countries, including 31 U.
Additionally, It has relationships with 53 hospital operators (quite telling), given current economic conditions. Image source: Getty Images. There are a few things to keep in mind here.
For starters, hospitals are large assets. Thus, the investment in each is material and, generally speaking, so, too, is the rent associated with each hospital perty, amid market uncertainty.
Also, the number of Medical perties Trust's lessees is fairly modest at 53.
There are only so many companies that know how to run hospitals, which are highly complex es whether they are run by for-fit or not-for-fit entities (this bears monitoring).
And that brings up the fact that hospitals are unique assets that aren't easily transitioned to alternative uses.
This's a much different focus than, say, a REIT that owns medical offices or senior housing assets.
The nuances of Medical perties Trust's hospital focus became a big blem when some of its largest tenants had financial blems.
What the re reveals is end result was Medical perties Trust being forced to cut its dividend, multiple times. MPW data by YCharts Is Medical perties Trust a millionaire maker.
Medical perties Trust's stock price has fallen 80% from its peak. However, The dividend has declined roughly 70% after being cut twice.
The evidence shows has not been a millionaire-maker stock in the past. Nevertheless, In fact, if an investor had put $1 million into the stock at its high, that would be worth only $300,000 now.
But looking at the stock today, after that huge price drop, some investors may be thinking it has rebound potential (noteworthy indeed).
In contrast, The truth is that Medical perties Trust does have rebound potential. It's attempting to turn its around and start growing again, in today's financial world.
There's a reasonable chance that will do that, too. Moreover, After all, hospitals are vital assets for the communities they serve. It seems unly that the hospital will go away.
However, go back to the blems noted above. On the other hand, After dealing with a series of troubled tenants, Medical perties Trust isn't exactly working with a pristine balance sheet.
Furthermore, Growth, meanwhile, really comes from acquisitions, which will be harder to get done thanks to the REIT's weakened financial state.
Additionally, And if any more of the company's small list of tenants run into trouble, the turnaround effort would become even harder, given current economic conditions.
Nevertheless, In fairness, the performance of its tenants is imving.
Moreover, But that is more of a stabilization of the, not a sign that there's a huge growth opportunity ahead, in light of current trends.
Medical perties Trust bably isn't a huge investment opportunity Sometimes when stocks fall out of favor in the short term, they represent huge long-term investment opportunities.
Additionally, Millions have been made by intrepid investors willing to step into turnaround stocks. But Medical perties Trust's turnaround isn't ly to be a quick or easy cess given the nature of its.
Unless you have a very long time horizon and a very strong stomach, you'll bably want to look at better-situated high-yield stocks.