Why Medical Properties Trust Shares Are Dipping Today

Medical Properties Trust Inc MPW shares are trading lower by around 12% after it reported Q2 FY23 earnings.

The company reported revenues of $337.4 million, missing the consensus of $351.4 million.

MPW reported a net loss of $(42) million vs. net income of $190 million a year ago, reflecting previously disclosed accelerated lease intangible amortization of $286 million related to the early termination of five Utah hospitals leases and a related straight-line rent write-off of $95 million.

Normalized Funds from Operations (NFFO) per share stood at $0.48, an increase from $0.46 a year ago.

In July, the company sold three general acute hospitals in Kansas and Texas for around $100 million.

As of Q2-end, total assets stood at $19.2 billion, including $12.5 billion of general acute care hospitals, $2.6 billion of behavioral health facilities and $1.7 billion of post-acute facilities.

As of June 30, 2023, cash and cash equivalent stood at $324.1 million.

Outlook: MPW revised 2023 NFFO per share guidance to $1.53-$1.57 from $1.50-$1.61 earlier, compared to the consensus of $1.55.

Price Action: MPW shares are trading down by 12.3% at $8.85 on the last check Tuesday.