Medical Properties Trust Q2 FFO Rises 21%; Adjusted FFO and Revenues Miss Estimates (MPW)

Medical Properties Trust Q2 FFO Rises 21%; Adjusted FFO and Revenues Miss Estimates (MPW)


Before the bell on Thursday, real estate investment trust Medical Properties Trust, Inc. (MPW) reported a 21% year-over-year increase in second quarter funds from operations (FFO), with revenues advancing 17%. However, adjusted funds from operations and revenues missed Wall Street estimates.

The Birmingham, Alabama-based company posted a second quarter normalized FFO of $35.92 million, or 24 cents per share, up from $29.67 million, or 22 cents per share, posted in the second quarter of 2012.

On an adjusted basis, the company’s FFO clocked in at $34.75 million, or 23 cents per share, up from $29.70 million, or 22 cents per share, a year ago. However, according to analysts polled by Thomson Reuters, the company was expect to see adjusted FFO of 25 cents per share.

Funds from operations (FFO) is a typical measurement of earnings when looking at real estate investment trusts. It usually adds depreciation and amortization expenses to earnings, minus gains from the sale of properties.

Furthermore, Medical Properties said its second quarter net income was $27.35 million, or 18 cents per share, up from $19.32 million, or 14 cents per share, a year ago.

The company’s revenues came in at $57.47 million in the second quarter, up from $48.92 million a year ago. Analysts were expecting the company to see $60.31 million in revenues.

“MPT’s investment strategy has always focused on acquiring quality hospital real estate that achieves the industry’s most attractive returns,” said Edward K. Aldag, Jr., Chairman, President and CEO of Medical Properties Trust. “The Company has now completed more than $3.3 billion in acquisitions, and more than $407 million year-to-date, subject to completion of the $283.3 million transaction announced this morning. This amount exceeds our acquisition target for the full-year, and with five months remaining, we expect to complete additional acquisitions. These strategic investments, which generate high yields, are each highly accretive and with built-in inflation escalations, support future FFO per share growth and dividend coverage, create additional diversification in our portfolio and continue to enhance shareholder value.”

Medical Properties Trust shares were inactive during pre-market trading on Thursday. The stock is up 17.73% year-to-date.

The Bottom Line
Shares of Medical Properties Trust (MPW) offer a dividend yield of 5.68% based on last night’s closing price of $14.08 and the company’s annualized dividend payout of 80 cents per share.

Medical Properties Trust, Inc. (MPW) is not recommended at this time, holding a DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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