Why Medical Properties Trust Stock Is Sinking Today
Shares of healthcare real estate investment trust (REIT) Medical Properties Trust (NYSE: MPW) are under heavy pressure today. The healthcare REIT's stock was down by 8.3% as of 12:02 p.m. ET Thursday afternoon.
What's weighing on the company's shares today? Ahead of the opening bell, Medical Properties Trust released its 2022 fourth-quarter and full-year results. Although the company's top- and bottom-line results were largely in line with analysts' expectations, Medical Properties Trust reported a $171 million impairment charge related to four properties leased to Prospect Medical Holdings in Pennsylvania. In addition, Medical Properties Trust included a $112 million write-off on unbilled Prospect rent in its latest financial report.
Medical Properties Trust stock lost over half of its value last year in response to concerns emanating from a tenant's (Pipeline Health) bankruptcy filing. Investors are clearly concerned that the unfavorable dynamic of hot inflation and rising interest rates will make it tough for hospitals to pay rent in a timely manner.
Source Fool.com
