An update from Truist for those still holding on to their MPW shares....
MPW is selling its Australian hospitals for essentially the same amount as the associated debt, pulling earnings dilution that we expected to be realized in 2024 up a few quarters earlier. Despite apparently selling at a loss to the 2019 purchase price (considering FX) and paying down very low yielding debt (2.45%) with all of the proceeds, MPW’s stock was up 8.5% in the past two days versus 3.6% for REITs overall. The stock is still down 62% over the past 12 months versus 26% for REITs.
We are lowering our 2023 FFO estimate, but slightly raising 2024 on lower/later assumed acquisitions, later equity issuance (2025) at a better price, and some credit for expected Prospect recoveries next year. We still expect FFO declines over the next few years. Our PT moves to $9 from $8, as described below.
