Why Medical Properties Trust Stock Rallied Nearly 12% in July

Shares of Medical Properties Trust (NYSE: MPW) jumped 11.6% in July, according to data provided by S&P Global Market Intelligence. The main driver was the real estate investment trust's (REIT) continued progress on its plans to bolster its liquidity. The hospital landlord sold eight more facilities last month, pushing it further past its liquidity target.

Medical Properties Trust has battled several notable headwinds in recent years. Its two largest tenants have struggled financially, impacting their ability to pay rent. That issue and much higher interest rates have made it more challenging for the healthcare REIT to refinance maturing debt. As a result, the REIT has had to take steps to shore up its liquidity.

The company took another step forward on its plan to bolster its liquidity last month. It agreed to sell a 50-bed hospital in Arizona and seven freestanding emergency departments for $160 million. That sale price was above the $92 million the REIT initially invested to build the facilities for their original operator between 2015 and 2017. That operator subsequently went bankrupt in 2017. Medical Properties Trust later released the properties to Dignity Health at the same rental rate. That company is now buying them from the REIT.

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Source Fool.com