Why Medical Properties Trust Stock Is Falling Today

Shares of Medical Properties Trust (NYSE: MPW) were down 4.4% as of 11:55 a.m. ET Tuesday after having been down by as much as 8% earlier in the session. Those declines came after the Bureau of Labor Statistics (BLS) announced that the Consumer Price Index (CPI) rose 0.3% month over month in January -- a larger increase than expected.

Why did Medical Properties Trust stock decline on this news? Investors are concerned that the Federal Reserve could delay making highly anticipated interest rate cuts.

Tuesday's BLS report doesn't just affect Medical Properties Trust. However, because it is a real estate investment trust (REIT), it's impacted by interest rates more than many companies are. REITs depend heavily on borrowing to fund their purchases of new properties to lease. When interest rates are higher, their borrowing costs rise and profitability falls.

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Source Fool.com