Medical Properties Trust shares rally on Utah hospital deal

By Steve Goldstein

Stock heads for biggest gain in 15 years

Shares of beleaguered hospital real estate owner Medical Properties Trust soared Monday, toward their best day in 15 years, after the company agreed to sell Utah hospital properties.

Medical Properties Trust Inc. (MPW) said it sold interests in five Utah hospitals to a venture 75% held by by an unnamed investment fund for $886 million. MPT said it retains a 25% interest in the venture. The venture placed new non-recourse secured financing, providing $190 million of additional cash to MPT.

MPT said the two transactions delivered $1.1 billion of cash before costs and reserves, which will be used to reduce outstanding debt and for general corporate purposes.

Medical Properties Trust shares ran up 19.3% in morning trading, which would be the biggest one-day gain since the record rally of 24.4% on March 10, 2009.

"Our primary focus remains on accelerating our capital allocation strategy, and we are now confident that we will exceed our initial target of $2.0 billion in liquidity transactions in 2024 based on the valuations achieved on recent transactions and the terms we are actively negotiating for additional transactions," said CEO Edward Aldag in a statement.

Medical Properties Trust has lost more than 40% over the last 52 weeks, amid concern over its largest tenant, Steward Health Care System.

-Steve Goldstein

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04-15-24 1051ET

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