3 Things About Medical Properties Trust That Smart Investors Know
If you're like most investors who know about Medical Properties Trust (NYSE: MPW), you've probably drooled over its shockingly high forward dividend yield, which is around 11% as of this writing. But as the old saying goes, not all that glitters is gold, and there's a lot more to this stock's story than its yield -- and its story has been darkening substantially over the past six months.
Smart investors know three critical things about this company that average investors might be missing. Let's examine each and figure out whether this business is actually as tempting as it might appear to be at first.
Smart investors understand that MPT's base of revenue rises when it procures more properties, because gaining rentable floor space yields more rent. At the same time, if it sells off its real estate to pay back debt or to realize a gain on its investments, its top line will contract, since it can't collect rent from assets it no longer owns. The company can also bring in more revenue by hiking rents, and in 2023, it expects this move to bring in an additional $57 million.
Source Fool.com
