MPW - REIT- Medical Properties

[MichealKnight]

Div: 7.9%.

Trading pretty close to 52 week low - it's around $14.60 today.

Pre-Covid - traded around 22-24.

During the Covid Crash - Went down to $14.07.

So I look at it - it's basically trading at what it did at the height of Covid selling.

Don't see any gaps in the dividend and the div raises are modest - but consistent with the most recent increase being 12/21 -- I would think paying out more cash - isn't a bad sign?

So.... there's gotta be a catch - why will they pay my chubby BigMac eating backside a nice 7.9%? I can't speak to each and every one of their properties -- but overall - and this is a very qualitative statement - I dunno, hospitals, doctors offices complexes - - I don't remember those parking lots being empty point being, people are going to the doctor and hospital. If anything, again people, and household formation by the Z's and Millennials would keep the medical properties busy and not vacant?

Hoping some of the investors here would comment ....? Thanks

 

[Winemaker]

I pretty sure REITS have to pay out 90% of their taxable income, but it may not all be profit. I can't say much for MPW, but I've owned DOC, CTRE, and OHI for years in my dividend/income portion of my portfolio. Modest price appreciation, dividends are decent. I'm sure MPW is similar and will be fine.

 

[ncbill]

A decent coverage ratio is what you want to see.

 

[Mr. Tightwad]

I don't recall the specifics, but supposedly they lent their largest tenant $, which enabled that tenant to make their payment to MPW, causing some to fear that their largest tenant would go under soon.

Check into it, I might be off with the details.

 

[njhowie]

REITs are not the place you want to be in a rising interest rate environment.

 

[aja8888]

MPW has gotten some bad press lately. Seeking Alpha has a few articles discussing it. Free to read.

 

[troutnut1]

Mine had great tenants too. Like Amazon. It was made to look good on paper. But the insiders were thieves and I lost a bundle. My former (now fired) advisor set this up and said he regretted it later. But what a mistake!

 

[ownyourfuture]

I don't recall the specifics, but supposedly they lent their largest tenant $, which enabled that tenant to make their payment to MPW, causing some to fear that their largest tenant would go under soon.

Check into it, I might be off with the details.

https://seekingalpha.com/article/4505262-medical-properties-trust-vigorously-dispels-rumors

 

[ownyourfuture]

REITs are not the place you want to be in a rising interest rate environment.

That's what I thought too. I own a REIT similar to MPW.
National health investors (NHI)
Not sure if yahoo charts are accurate, & it's only for 6 months, but that shows....
NHI @ +18% Vs -10% for the S&P 500

Full Disclosure: If you switch to a five-year, the S&P 500 crushes the REIT.