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What's in the Cards for Medical Properties in Q2 Earnings?

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Key Takeaways

  • MPW is expected to report a 14.3% year-over-year revenue decline for Q2 2025.
  • Quarterly FFO per share is projected to fall 43.5% to $0.13 from the prior-year period.
  • High interest expenses and exposure to troubled operators may weigh on MPW's Q2 results.

Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — is scheduled to report second-quarter 2025 earnings results on July 31, before the opening bell. The company’s quarterly results are expected to reflect a year-over-year decline in revenues and normalized funds from operations (FFO) per share.

In the last reported quarter, this real estate investment trust (REIT), which acquires and develops net-leased hospital facilities, posted a normalized FFO per share of 14 cents, missing the Zacks Consensus Estimate of 15 cents.

Over the trailing four quarters, MPT beat the Zacks Consensus Estimate on two occasions and missed twice, with the average surprise being 0.21%. This is depicted in the graph below:

 

 

Factors to Consider Ahead of MPW’s Q2 Results

Medical Properties owns a premium acute care portfolio, which is likely to have benefited from the favorable operating trends of the healthcare industry on the back of an aging population.

Further, the adoption of a disciplined capital allocation strategy aimed at fortifying its balance sheet strength is likely to have given MPW an edge.

However, elevated interest expenses and exposure to certain troubled operators are anticipated to have cast a pall on the company’s quarterly performance to some extent.

Projections for MPW

The Zacks Consensus Estimate for straight-line rent revenues is pegged at $39.1 million, suggesting an increase from the $38.4 million reported in the year-ago period.

However, the Zacks Consensus Estimate for second-quarter rent-billed revenues is pegged at $170.2 million, suggesting a fall from the $183.8 million reported in the year-ago period.

The consensus mark for income from financing leases stands at $9.6 million, suggesting a fall from $27.6 million reported in the year-ago quarter. The consensus mark for interest and other income stands at $8.3 million, suggesting a decline from the $16.8 million reported in the prior-year quarter.

The Zacks Consensus Estimate for quarterly revenues is pegged at $228.6 million, implying a 14.3% fall from the prior-year quarter’s reported figure.

Medical Properties’ activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly normalized FFO per share has been revised a cent downward to 13 cents over the past three months. The figure implies a year-over-year fall of 43.5%.

What Our Quantitative Model Predicts for MPW Stock

Our proven model does not conclusively predict a surprise in terms of normalized FFO per share for Medical Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

Medical Properties has an Earnings ESP of 0.00% and currently carries a Zacks Rank of 4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the broader REIT sector — American Tower (AMT - Free Report) and VICI Properties (VICI - Free Report) — that you may also want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

AMT, slated to release quarterly numbers on July 29, has an Earnings ESP of +0.95% and carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

VICI Properties is slated to report quarterly numbers on July 30. VICI has an Earnings ESP of +15.43% and carries a Zacks Rank of 3 at present.

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.


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