Where Will Medical Properties Trust Be in 5 Years?
Medical Properties Trust (NYSE: MPW) is a real estate investment trust (REIT) that invests in hospitals. In recent years, healthcare has unfortunately not been a great place to invest due to the pandemic.
But the stock could be mighty tempting to contrarian investors right now. If the bears are wrong about the business and its financials improve and it continues paying a huge dividend, there could be some mammoth profits and returns to be made from owning the stock. There are, however, many ifs and uncertainties along the way that investors need to consider. Below I'll look at how the company may do over the next five years, and whether it's a worthwhile investment to consider during that time frame.
A big obstacle facing many REITs these days is high borrowing costs. As long as interest rates remain high, that can inhibit REITs from taking on additional debt to fund property purchases and acquire more properties, which, in turn, leads to more recurring rent revenue.
Source Fool.com
