Medical Properties Trust (NYSE: MPW) is in a bit of a pickle. On May 6, its largest tenant, Steward Health Care, filed for bankruptcy. Then, on May 9, MPT reported its earnings for the first quarter. The company's stock is nearly 48% off its recent highs within the last 12 months.

But could the worst be over, and could the stock thus be a buy now that there are unlikely to be any major surprises lurking? Let's investigate the answers to both of those questions by first examining how Steward's bankruptcy will affect it.

MPT brought in $336.6 million in rental revenue during Q4, leasing hospital floor space to healthcare companies like Steward. In that period, Steward accounted for 20.3% of the total, or roughly $68.3 million. Under the conditions of bankruptcy, it is very improbable that Steward will be able to pay its $9 billion in total liabilities, $6.6 billion of which are long-term rent obligations.

Continue reading

Source Fool.com