We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Medical Properties Q1 NFFO Misses Estimates, Revenues Fall Y/Y
Read MoreHide Full Article
Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — reported first-quarter 2025 normalized funds from operations (NFFO) per share of 14 cents, missing the Zacks Consensus Estimate of 15 cents. This compared unfavorably with 24 cents per share recorded in the prior-year quarter.
Results reflect a decrease in rent billed and straight-line rent revenues. Also, an increase in interest expenses in the quarter remains a concern.
MPT clocked in revenues of $223.8 million in the first quarter, missing the Zacks Consensus Estimate by 5.1%. The figure declined 17.5% from the year-ago quarter.
Per Edward K. Aldag, Jr., chairman, president and CEO, “Our first quarter transactions and results are the culmination of two years of successful efforts to reduce debt, extend maturities, capture unrealized value, and re-tenant hospital real estate at attractive and sustainable rents. MPT is well positioned to grow earnings from our existing in-place real estate portfolio, access capital for accretive growth in a uniquely attractive market and deliver growing dividends and other returns to our shareholders.”
Behind the Headlines
In the reported quarter, Medical Properties’ rent billed totaled $165.2 million, decreasing 17.1% from the prior-year quarter.
Its straight-line rent revenues were $40.1 million, down 10.3% from the year-ago quarter.
Income from financing leases of $9.9 million in the first quarter decreased 39.6% from the year-ago quarter. Interest and other income was $8.6 million, down 21.2% from the year-ago period.
Medical Properties’ interest expenses were up 6.5% year over year to $115.8 million.
MPW's Balance Sheet Position
Medical Properties exited the first quarter of 2025 with cash and cash equivalents of $673.5 million, up from $332.3 million as of Dec. 31, 2024.
As of March 31, 2025, it had an adjusted net debt to adjusted annualized EBITDA ratio of 9.9.
Digital Realty Trust (DLR - Free Report) reported first-quarter 2025 core funds from operations (FFO) per share of $1.77, beating the Zacks Consensus Estimate of $1.73. The FFO also increased 6% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Results reflected steady leasing momentum with better rental rates amid rising demand. However, higher operating expenses undermined the performance to an extent. DLR raised its 2025 core FFO guidance range.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported first-quarter 2025 adjusted funds from operations (AFFO) per share of $2.30, beating the Zacks Consensus Estimate of $2.28. This compares unfavorably to the AFFO of $2.35 reported in the prior year.
Results reflected decent leasing activity and rental rate growth. However, lower occupancy and higher interest expenses year over year undermined the results to some extent. ARE has revised its 2025 outlook.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Medical Properties Q1 NFFO Misses Estimates, Revenues Fall Y/Y
Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — reported first-quarter 2025 normalized funds from operations (NFFO) per share of 14 cents, missing the Zacks Consensus Estimate of 15 cents. This compared unfavorably with 24 cents per share recorded in the prior-year quarter.
Results reflect a decrease in rent billed and straight-line rent revenues. Also, an increase in interest expenses in the quarter remains a concern.
MPT clocked in revenues of $223.8 million in the first quarter, missing the Zacks Consensus Estimate by 5.1%. The figure declined 17.5% from the year-ago quarter.
Per Edward K. Aldag, Jr., chairman, president and CEO, “Our first quarter transactions and results are the culmination of two years of successful efforts to reduce debt, extend maturities, capture unrealized value, and re-tenant hospital real estate at attractive and sustainable rents. MPT is well positioned to grow earnings from our existing in-place real estate portfolio, access capital for accretive growth in a uniquely attractive market and deliver growing dividends and other returns to our shareholders.”
Behind the Headlines
In the reported quarter, Medical Properties’ rent billed totaled $165.2 million, decreasing 17.1% from the prior-year quarter.
Its straight-line rent revenues were $40.1 million, down 10.3% from the year-ago quarter.
Income from financing leases of $9.9 million in the first quarter decreased 39.6% from the year-ago quarter. Interest and other income was $8.6 million, down 21.2% from the year-ago period.
Medical Properties’ interest expenses were up 6.5% year over year to $115.8 million.
MPW's Balance Sheet Position
Medical Properties exited the first quarter of 2025 with cash and cash equivalents of $673.5 million, up from $332.3 million as of Dec. 31, 2024.
As of March 31, 2025, it had an adjusted net debt to adjusted annualized EBITDA ratio of 9.9.
MPW’s Zacks Rank
Medical Properties currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Medical Properties Trust, Inc. Price, Consensus and EPS Surprise
Medical Properties Trust, Inc. price-consensus-eps-surprise-chart | Medical Properties Trust, Inc. Quote
Performance of Other REITs
Digital Realty Trust (DLR - Free Report) reported first-quarter 2025 core funds from operations (FFO) per share of $1.77, beating the Zacks Consensus Estimate of $1.73. The FFO also increased 6% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Results reflected steady leasing momentum with better rental rates amid rising demand. However, higher operating expenses undermined the performance to an extent. DLR raised its 2025 core FFO guidance range.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported first-quarter 2025 adjusted funds from operations (AFFO) per share of $2.30, beating the Zacks Consensus Estimate of $2.28. This compares unfavorably to the AFFO of $2.35 reported in the prior year.
Results reflected decent leasing activity and rental rate growth. However, lower occupancy and higher interest expenses year over year undermined the results to some extent. ARE has revised its 2025 outlook.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.