Medical Properties Trust Inc (MPW) Options

So good that Wall Street responded with a resounding "meh". Over the years I've found that stocks are shorted heavily with good reason. MPW has been selling off properties to maintain their "dividend", which is really seemingly just a return of principal.
I used to owned this stock, thinking it was a logical investment. However, there has been something drastically wrong going on here. I sold in Oct. '22 fortunately.

OK, so just went over to this Viceroy Research website. Don't know who is right, but they are pulling no punches! Based on the articles put out, true or false, this stock I don't see rebounding for a long while. Below is one of many arrows shot.

https://viceroyresearch.org/wp-content/uploads/2024/10/MPW-Trumbull-County-Cloak-and-Dagger.pdf

Also just noticed I lost 50% or so in this trust, about $23k.....minus a couple years of "dividends" I also note their "dividend" has gone from .29 to .08.

good release: Business Wire
Mon, October 14, 2024, 2:17 PM PDT 6 min read

In This Article:
MPW
-4.63%
Independent Members of MPT’s Board of Directors Stand Firmly Behind Management

BIRMINGHAM, Ala., October 14, 2024--(BUSINESS WIRE)--The independent members of the Board of Directors of Medical Properties Trust, Inc. (the "Company" or "MPT") (NYSE: MPW) today released a letter to shareholders regarding the findings of an independent, forensic investigation into short-seller allegations, including with respect to transactions between the Company and Steward Healthcare ("Steward"). The Board’s Audit Committee engaged Wachtell, Lipton, Rosen & Katz ("Wachtell Lipton") to conduct this investigation, which was completed in February 2023.

The full text of the letter is included below.

Dear fellow shareholder,

Over much of the past two years, Medical Properties Trust has been the target of considerable scrutiny from short-selling hedge funds as well as certain media outlets. As fiduciaries for our shareholders, the Board treats these matters with the utmost seriousness.

In response to certain claims asserted by Viceroy Research, the Board’s Audit Committee engaged Wachtell Lipton in early 2023 to conduct an independent investigation into the short-seller allegations, including with respect to MPT transactions involving Steward Healthcare beginning in 2016. Wachtell Lipton in turn retained a leading global consulting firm to assist with financial forensics as part of this investigation. No limitations or restrictions were placed on the scope of the investigation and management cooperation with the investigation was exemplary.

As has been previously reported, in March 2023 MPT filed suit against Viceroy for defamation, civil conspiracy, and tortious interference (among other claims). Due to the active and sensitive nature of this litigation, our Board kept the investigation findings confidential at that time. However, as the OCCRP and Boston Globe resurfaced many of those same allegations in their respective stories published on October 9, 2024, we believe it is now critically important for all investors to have access to this information.

The key findings from the investigation are as follows:

The investigation identified no evidence that MPT gratuitously overpays its operator-tenants for real estate.

The investigation identified no evidence of improper round-tripping.

The investigation found no evidence of improper recognition of "uncollectable" rent through GAAP-mandated straight-line revenue recognition. The investigation also found no evidence to substantiate the allegation that MPT was required to consolidate Steward’s financial results.

The investigation concluded that neither Manolete Health nor MPT has an ownership interest in any Malta property or hospital.

The investigation yielded no evidence that management manipulated acquisitions or other metrics to meet compensation targets.

The investigation yielded no evidence of concerns regarding management integrity.

Our Board continues to stand firmly behind our management team.

During Steward’s lengthy bankruptcy process, MPT’s team worked tirelessly to avoid hospital closures, protect jobs, and ensure continuity of care for patients. Our recently announced global settlement agreement with Steward and its creditors, which was approved by the bankruptcy court in September 2024, enabled MPT to take back control of its real estate, immediately transition operations to quality replacement operators, and sever its relationship with Steward.

With Steward’s removal from our portfolio, we look forward to demonstrating the strength and resilience of MPT’s diversified portfolio of hospital real estate, our ability to create value for shareholders over the long-term, and the importance of our business model to an industry in dire need for more capital solutions.

Sincerely,

Michael G. Stewart, Lead Independent Director
G. Steven Dawson, Independent Director
Caterina A. Mozingo, Independent Director
Emily W. Murphy, Independent Director
Elizabeth N. Pitman, Independent Director
D. Paul Sparks, Jr., Independent Director
G. Reynolds Thompson, III, Independent Director

About Medical Properties Trust, Inc.

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world’s largest owners of hospital real estate with 435 facilities and approximately 42,000 licensed beds in nine countries and across three continents as of June 30, 2024. MPT’s financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. For more information, please visit the Company’s website at www.medicalpropertiestrust.com.

:) ....

D I P baby :)

Yes it was. Got pushed pretty good by the shorts and option players.

Horrible day yesterday. Wow.

A lot of great news on all fronts. Much healthier currently...

Peaked over 5 today. Div coming up. PR earning coming up. CC coming up.

Red day on low volume. See if divi date squeezes the shorts.

Bigger news! ... divi' is coming. I am taking that as a plus with regards to Steward.

:) big news!

I'd rule it out just to be safe. Steward should be settled within three Months.

Yeah..only seen with lawsuits..lol.....it's a boiler plate term. It is very important though with regards to a liquidation event(imo)

NO...they shouldn't pay any dividend until Steward is red' up. The heat is growing for them on a daily basis. The lawsuit is just another ambulance chaser like all the others you see.

A little more color on that . From the sec filing. -- MEDICAL PROPERTIES TRUST PROVIDES UPDATE ON STEWARD HEALTH CARE

Birmingham, AL – January 4, 2024 – Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW) today announced plans to accelerate its efforts to recover uncollected rents and outstanding loan obligations from Steward Health Care System (“Steward”) and related processes designed to significantly reduce its exposure to Steward.

As disclosed in the Company’s third quarter 2023 Form 10-Q, Steward delayed paying a portion of its September and October rent to MPT. Despite its obtaining additional working capital financing and selling its non-core laboratory business in the fourth quarter of 2023, Steward recently informed MPT that its liquidity has been negatively impacted by significant changes to vendors’ payment terms. As a result, Steward has continued to make partial monthly rent payments, and total unpaid rent under its consolidated master lease with MPT is approximately $50 million as of December 31, 2023 (exclusive of approximately $50 million that was previously deferred and not currently payable related to the Norwood Hospital, which is under reconstruction).

MPT has engaged Alvarez & Marsal Securities, LLC (“A&M”) as its financial advisor and KTBS Law, LLP and Baker, Donelson, Bearman, Caldwell & Berkowitz, PC as legal advisors to advise the Company on its options to enable the recovery of uncollected rent and outstanding loans. MPT’s management team and advisors have worked closely with Steward and its own advisors to develop an action plan which, if successful, is designed to strengthen Steward’s liquidity and restore its balance sheet, optimize MPT’s ability to recover unpaid rent, and ultimately reduce MPT’s exposure to Steward.

As part of this plan, Steward is pursuing several strategic transactions, including the potential sale or re-tenanting of certain hospital operations as well as the divestiture of non-core operations. Further, Steward has committed to seeking a third-party capital partner for its managed care business, net proceeds from which will be used in part to repay all outstanding obligations to MPT. Steward has also intensified measures to improve collections and overall governance, including establishment of a transformation committee comprised of newly appointed independent directors and submission of periodic cash activity and asset sale progress reports to MPT and its ABL lenders.

To protect the value of MPT’s assets and hospital operations while Steward executes on its strategic plan, MPT has agreed to fund a new $60 million bridge loan secured by all MPT’s existing collateral plus new second liens on Steward’s managed care business, subordinate only to Steward’s ABL lenders. A portion of MPT’s existing approximately $215 million of transaction-specific and working capital loans to Steward will now also be secured by these same second liens on the managed care platform. The Company has also consented to the deferral of unpaid rent under the consolidated master lease as of December 31, 2023, as well as a limited and tapering deferral of approximately $55 million of 2024 rents, until the earlier of June 30, 2024 or the completion of anticipated asset sales. Partial cash rent payments are expected to recommence in February, including approximately $9 million in the first quarter and approximately $44 million in the second quarter of 2024.

There can be no assurance that Steward will successfully execute its plans or that the Company will recover all of its deferred rent and loans outstanding to Steward. As a result, MPT cannot be assured that Steward will make all scheduled lease payments throughout the remaining approximate 22-year fully extended term of its master lease. Accordingly, pursuant to generally accepted accounting principles, the Company expects to record a non-cash charge in the fourth quarter of 2023 to write off consolidated straight-line rent receivables of approximately $225 million, its approximately $25 million share of straight-line rent receivables related to the unconsolidated Massachusetts partnership and consolidated unpaid rent receivables of approximately $100 million (which includes the previously referenced $50 million related to the Norwood development). Furthermore, MPT routinely evaluates for indications of impairments to its real estate and other investments, including those related to Steward. Such evaluations are ongoing as of December 31, 2023, and no assurances can be provided that further impairment of real estate and non-real estate assets will not be taken with MPT’s fourth quarter 2023 reporting.

Importantly, MPT’s non-Steward portfolio continues to generate robust revenue as demonstrated in the table below, which separates Steward’s third quarter 2023 GAAP revenue from the remainder of the Company’s portfolio:

and a follow up -- As announced in early January, MPT has worked with Steward to develop an action plan designed to strengthen Steward’s liquidity and restore its balance sheet, optimize MPT’s ability to recover unpaid rent and ultimately reduce MPT’s exposure to Steward. MPT and certain of Steward’s asset backed lenders are negotiating a new bridge facility whereby it is expected, but there is no assurance, that each party will fund an initial $37.5 million to Steward, based on its achievement of certain milestones previously established in January. MPT has already funded $20 million of such amount. Any subsequent loan fundings would be contingent on Steward achieving further significant milestones that optimize the amount and timing of recoveries for MPT and Steward’s ABL lenders.

The dividend has not been ruled out. The company stated the board will get together some time this month and make that decision.

Had to look up this term: "Uncommercial transactions"

" It is alleged that Defendants employed a number of "uncommercial transactions" to prop up MPW's non-performing assets in the short term to avoid recording impairment charges."

I'm guessing this has already been posted, but not good news here.
I'm not seeing any reports on the dividend, although I would expect today is the day it should be announced.
As expected, and my reason for getting out is, it no longer looks like a dividend. It now looks like a return of principal.

Attention Long-Term Shareholders of Medical Properties Trust, Inc. (MPW)
Newsfile8:30 AM (UTC-05:00) Eastern Time (US & Canada) Feb 16, 2024

Philadelphia, Pennsylvania--(Newsfile Corp. - February 16, 2024) - A recently filed securities fraud class action complaint alleges that Medical Properties Trust, Inc. (NYSE: MPW), via certain of its officers and directors, engaged in a widespread scheme to hide from investors that, contrary to the Company's public representations, its portfolio of assets were severely distressed and non-performing such that they could not make their rent payments. It is alleged that Defendants employed a number of "uncommercial transactions" to prop up MPW's non-performing assets in the short term to avoid recording impairment charges.

Current Medical Properties Trust shareholders who have held Medical Properties Trust stock since on or before July 25, 2019, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.

If you would like to learn more about this matter, you are encouraged visit https://grabarlaw.co..., contact Joshua H. Grabar at jgrabar @FH-6085. $MPW #MedicalPropertiesTrust

Attorney Advertising Disclaimer

If they do manage to sell some meaningful property, several for that matter and soon, they could break the stranglehold the shorts have on this one. The 1st qt will come to an end in a couple of weeks. When that qt filing comes out, I suspect another heavy write down / write off, due to some of the tenants not being able to fully pay in the first qt

The dividend has not paid so far in the 1st qt. There was a mention by the company that they are hoping to sell some of their proprieties and then the board will meet to decide
I hope they do, as a REIT goes most people invest because of that dividend.

There is currently 196 million shares short. Roughly 1/3 of all shares.

The debt load on this company is $10 billion. They have 1 billion 58 million due in 2024. 1.8 billion due in 2025. 3.5 billion due in 2026. 1.8 billion due in 2027.
They have total revenue in 2023 of 871 million. However, after expenses they managed to lose 556 million for the year.
This likely means they will be forced to sell even more of their properties to pay off the some /all of that debt load.
All numbers taken from the 10K

The latest report -yearend 4th qt report from Feb.
Here is how Medical Properties performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Interest and other income: -$53.45 million versus $26.31 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -228.2% change.
Revenues- Income from financing leases: $19.41 million versus $18.76 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -60.3% change.
Revenues- Rent billed: $78.42 million compared to the $187.14 million average estimate based on three analysts. The reported number represents a change of -66.2% year over year.
Revenues- Straight-line rent: -$166.77 million versus the two-analyst average estimate of -$63.78 million. The reported number represents a year-over-year change of -387.3%.
Net Earnings Per Share (Diluted): -$1.11 versus the five-analyst average estimate of -$0.43.

This may provide the management a little get up and go. From the SEC filings - On March 8, 2024 (the “Grant Date”), the Compensation Committee (the “Committee”) of the Board of Directors of Medical Properties Trust, Inc. (the “Company”) granted performance-based restricted stock unit awards (the “Awards”) to Edward K. Aldag, Jr. and R. Steven Hamner, the Company’s Chief Executive Officer and Chief Financial Officer, respectively, covering an aggregate of 2,700,000 restricted stock units (the “RSUs”) at the target level of achievement. The RSUs may be settled only in cash and the cash payment will be calculated based on the average closing price of the Company’s common stock on the five trading days ending on the vesting date. The Awards were granted under the Company’s Amended and Restated 2019 Equity Incentive Plan (the “2019 Plan”) and will be eligible to vest only if the Company’s share price reaches certain appreciation hurdles, as follows:

Stock Price Hurdle

Percentage of Target RSUs Earned
$7.00 (67% increase above the Grant
Date stock price)
100%
$8.50 (103% increase above the Grant
Date stock price)
200%
$10.00 (139% increase above the Grant
Date stock price)
300%
The purpose of the Awards is to motivate and retain these key executives to help execute the Company’s strategic business plan and restore shareholder value. In determining the appropriateness of granting, and the structure of, the Awards, the Committee was advised by its independent compensation consultant.

The actual number of RSUs to be earned pursuant to the Awards will be determined based on the trailing 20-trading day average closing price of the Company’s common stock during the four-year period ending on December 31, 2027 (the “Performance Period”). Earned RSUs will become vested on the earlier of equal quarterly installments over the first year from the date the RSUs are earned or the date that the Committee makes a determination of achievement of the performance metrics following the end of the four-year Performance Period, subject to the grantee’s continued employment through such date.

A copy of the form of award agreement for the Awards is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference. The foregoing description of the terms of the Awards is qualified in its entirety by reference to the full text of such form of award agreement.

Another quick chart. 3year. A person can clearly see the lower low steps and the lower high peaks. It's been a terrible long term hold to date and while a person could have done some quick trades due to spacing/time elements it's still not ideal on a risk reward scale.

Posting a chart to show the current state. This is a continuance chart that auto updates on my screens. 2 FIB settings, and the base on the indictors. Did use candle volume. Just a simple ref. to get things tracked.

On the road again.

I expected worse....next quarter filing should tell the most...or just enough to add.

I am sure you are aware of the ongoing class action.

However, for longer term holders who still hold MPW shares (shareholders who have held Medical Properties Trust stock since on or before July 25, 2019), a few corporate governance actions have been filed. There is still room for more. Longer holders can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.

If you would like to learn more about this matter, visit https://grabarlaw.com/the-latest/mpw-shareholder-investigation/

Can't wait to see who sucks up Stewards $patients and beds. lol...https://www.wgbh.org/news/politics/2024-02-12/top-house-democrats-rule-out-steward-health-care-bailout

Just might be a good time to add after the reality next week. That's a big maybe though.

I will say though, I wasn't so fond of the company she kept years back. She's not nearly as quick to accept a conspiracy as I am.

Just kidding. Janice and I have been busting scam stocks for decades. She has her way (which keeps her out of trouble), and I have mine.

You don't like her? Why?

Janice has little money and doesn't own a car???
Good thing she has the Basher helicopter I guess.

Yes, virtually every IHUBer with enormous numbers of followers is a pumper, beloved by penny players. I'm quite familiar with Pistol Pete. His posts are rubbish, but he posts night and day. One exception might be Janice Shell who writes quality posts, that are mostly not pumping specific issues.

As far as I know, Janice hasn't played the market since the 1990s. She's stated that she has very little money and doesn't even own a car. I've found her many posts to be honest and consistent, so they are quite unlike what one usually sees.

Here is a little proof how many pumpers there are. This guy is an obvious pump and dumper. Look how many followers here he has....


$Pistol Pete$
Level Icon
Followers 2547

Thanks for your input-- this is a relatively new holding for me

Uncle salty, the dividend will probably be scratched on either the next expected dividend announcement...or the following. No one should be buying this currently for a dividend ...just to be safe. It will depend on it's collection efforts with Steward.

is this stock paying .15 quarterly dividend per share? if so isn's the current yield about 17.5% - not too shabby

I owned stocks long before IHUB using a conventional stock broker where orders were placed by phone or in person in his office. Because commissions and taxes were so high back then there was almost no day trading. Most wealthy old geezers just owned blue chips and collected dividends, which is still a great way to do it. Almost no people my age owned stocks, but I knew a few who did it when I was in collage.

When the internet arrived, I was first exposed to pennyland idiots, most of whom lost everything in the tech crash of 2000.

I remember "paper trading" hot OTC pennies around 1996 and just about every one of them fell about 40% in a period of a month or two. I kept records. There were almost no exceptions except where a group pumped the stock and then the collapse took a little longer. Luckily, by around 1990, I had fallen in love with index funds and did well most years. Also, I always had money in bonds and banks and a good income.

Only way to really understand iHUB is if you see our local players as gambling addicts. Vegas is full of those types.

To this day I've never owned a penny stock. And never daytraded. My kids too.

When I first started looking at penny stocks (yes, I bought some for about 4 months back in 1999 I think it was), the guy who was giving me ideas, lost all his money, his family and was just begging for death to come and take him. Kind of a reality wake up call.
As I've tried to tell so many penny nitwits.....you don't want to put enough money to matter into one of them so why bother?
My first big discovery was PCBM/CMKX stock. Can't believe how many people put their retirement savings into it. So many lost their spouses.
It was like seeing Black Tuesday except it happened every day.
It took me three weeks to realize penny stocks were scams. How do people still not know about 20+ years?

Some trade almost everyday. How do you have that many convictions about stocks??? One such guy eventually let on that his average trade was about $35, so in that way he was sensible

You know there have been stock trader suicides including one on IHUB a few years ago. A father with a wife and three kids. He put everything he had in a junk Nasdaq tech stock and kept averaging down even after it was delisted and went OTC. That may have been the only stock he ever owned!

One guy on a penny stock board was arguing with me. Then I found out he had HUNDREDS invested in the market. How do you have less than a thousand dollars and not just be in a mutual fund?
I get that they don't have money, but they don't have common sense or the ability to listen to those with more knowledge either.
There's a difference between being unknowledgeable and downright stupid.

Even the rare ones, with some money, put it all in a few stocks because they crave lottery-like plays, where they can lose a ton with the tiny chance of "scoring" a big "jackpot". Making a nice steady return isn't their goal. 99% would do better in index funds or a broad portfolio of blue chips. They know it, but they need to gamble.

Casinos are full of "players" like this crowd. At one time IHUB had a few normal sensible investors but very few now.

I dunno, something about this one and $OHI. Both seemed like no brainers with the aging up of America and yet......
In regards to this one, the dividend cannot be sustained, so something is gonna give. Cutting the dividend in half was not enough.

Wasn't it the Big 5 at one time? (or was it Big 8?) Yes, both and more at various times.

"I'd say IHUB is probably about 65% pumpers, 33% mullets, and 2% real investors..."

A huge number are at least part time shills nowadays. My guess is the average local has a portfolio of a few thousand dollars and just a handful of stocks. Many have just one. Probably similar to the numbers that have been published for Robinhood. And many are pure stock gamblers. Or more precisely, gambling addicts who need to constantly buy and sell stocks and are oblivious to the possible tax and performance ramifications of doing that.

In my case I almost never sell my blue chips, except maybe to take a rare tax loss.

fung, too much money thrown at it .......at the wrong time. That's all. This is the only entry I made in the past two years besides maybe a little "T"...of course I may be wrong there because I added before they spun off that junk "WBD"...lol. I made two purchases and have just under $10k in this @ 8.change average. It's a REIT..so no matter what ..the accounting will always look sketchy ...why?...because it's a REIT :)

Most should be holding debt currently or legacy issuers..be it solid and recession tough. Demand is decreasing so rates will drop and add heavy headwind to all those issuers that are interest sensitive...ie utilities...REITs etc...

This puppy is the largest landlord(hospital) and will move past this...I just didn't want to trade it for revenue...I wanted simple income from a very small outlay of cash.

Boy...lol.that was long winded...sorry ha!

Wasn't it the Big 5 at one time? (or was it Big 8?)
I agree though, it's so funny when some of these posters make claims of an audit and then you look at who the auditor is and the other companies they've "helped".
I'd say IHUB is probably about 65% pumpers, 33% mullets, and 2% real investors.....this may be too generous though

I feel compelled to admit to a bias, as my son is a CPA for a Big Four auditing firm, and I often advise starting security research by looking into the auditor. If the auditor isn't rock solid, then run... "

"And I strongly prefer Big Four audited NYSE issues."