Shares of Medical Properties Trust (NYSE: MPW) soared 18.8% on Monday after the healthcare facilities-focused real estate investment trust (REIT) announced a major asset sale.

Late Friday, the company said it had sold its interests in five Utah hospitals to a newly formed joint venture with an investment fund for $886 million. Medical Properties Trust has retained a roughly 25% interest in the joint venture, while the fund purchased a 75% stake. The joint venture also placed new non-recourse secured financing simultaneous with the closing of the sale, giving Medical Properties Trust $190 million of additional cash. Altogether, the deal generates roughly $1.1 billion of total cash proceeds to Medical Properties Trust.

Medical Properties Trust said the proceeds will be primarily used to reduce outstanding debt, including payment in full of its $300 million Australian term loan due this year and repayment of borrowings under its revolving credit facility.

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Source Fool.com