MPT Sells Two Hospitals for $413M, Boosting Q3 Cash Proceeds to $680M
MPT is trading near its 52-week low of $3.39 (7.7% above the low).
Summary
Medical Properties Trust sold Idaho Falls Community Hospital and Mountain View Hospital to Intermountain Health for $413M, receiving $371M in cash after minority owner distributions. The 6.9% cap rate is solid for hospital real estate, and the sale brings Q3 aggregate cash proceeds to ~$680M, most of which will reduce debt. This follows the $2.4B refinancing completed in August and supports the company's deleveraging push amid high leverage and tenant credit challenges. The stock jumped 7.67% on the news, reflecting investor approval of the asset monetization.
At the time of this announcement, MPT was trading at $3.65 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $2.2B. The 52-week trading range was $3.39 to $6.47. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.