Shares of Medical Properties Trust (NYSE: MPW) are trading down by 34% this year as the real estate investment trust (REIT) struggles to attract investors amid rising interest rates and concerns relating to its tenants. The company cut its high dividend recently to support its efforts to reduce debt and improve its balance sheet.

However, many investors remain bearish on the REIT. Could a short squeeze happen?

Medical Properties Trust's focus on healthcare properties hasn't made the REIT a safe buy as it did in the past. Its tenants have faced rising costs related to the pandemic. Earlier this year, it admitted that one of its largest tenants, Prospect Medical, had been unable to pay its full rent. Concerns that a recession might be coming only exacerbated investors' worries about the REIT's safety as an investment.

Continue reading

Source Fool.com