Medical Properties Trust's Q4: Revenue Beat Offset By NFFO Decline, No FY24 Guidance Amid Steward Woes

Medical Properties Trust MPW reported fourth-quarter FY23 revenues of $336.6 million, beating the consensus of $311.1 million.

Normalized Funds from Operations (NFFO) per share stood at $0.36, a decrease from $0.43 a year ago but above the consensus of $0.30.

Medical Properties Trust reported a net loss of $(664) million vs. $(140) million a year ago.

As of end-2023, total assets stood at $18.3 billion, including $12.0 billion of general acute facilities, $2.6 billion of behavioral health facilities and $1.7 billion of post-acute facilities. As of December 31, 2023, cash and equivalents stood at $250.0 million.

Edward K. Aldag, Jr., Chairman, President and Chief Executive Officer, said, “Our primary focus is on accelerating our capital allocation strategy by pursuing transactions expected to generate at least $2 billion of incremental liquidity in 2024. We are making progress as evidenced by our recent agreement to sell hospital real estate to Prime at pricing well above our historical cost and substantially better than estimates of our implied market capitalization rate.”

“With regard to Steward, we are encouraged by the amount of interest received to date from other hospital operators for these mission-critical facilities, and we expect this real estate portfolio will either resume its contributions to earnings or become additional sources of liquidity as the year progresses.”

Due to uncertainty regarding its hospitals leased to Steward and the timing of liquidity transactions, the company plans not to provide an FY24 net income or normalized FFO outlook.

Related: Unpaid Rent Drama: Medical Properties Trust’s Stock Nosedives As Tenant Steward Struggles, Prompting New Loan

Price Action: MPW shares are up 0.42% at $3.615 on the last check Wednesday.