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Medical Properties Q2 NFFO Misses Estimates, Revenues Rise Y/Y
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Key Takeaways
Medical Properties posted Q3 NFFO of $0.13 per share, missing the consensus estimate of $0.16.
Revenues rose 5.2% year over year to $237.5 million, mainly driven by higher rent billed.
Interest expenses surged 24.6% while cash reserves fell to $396.6 million QoQ.
Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — reported third-quarter 2025 normalized funds from operations (NFFO) per share of 13 cents, missing the Zacks Consensus Estimate of 16 cents. This compared unfavorably with 16 cents per share recorded in the prior-year quarter.
Results reflect a marginal decrease in straight-line rent revenues and an increase in interest expenses. Rent billed, income from financing leases and interest and other income revenues grew year over year.
MPT clocked in revenues of $237.5 million in the third quarter, slightly missing the Zacks Consensus Estimate of $237.8 million. However, the figure increased 5.2% from the year-ago quarter.
Per Edward K. Aldag, Jr., chairman, president and CEO, “With cash rents ramping and increased opportunities to turn low-yielding assets into cash, we have growing flexibility to address our near-term debt maturities. With the added expectation for near-term recoveries from Prospect, we feel comfortable with our liquidity and believe strongly that MPT stock is one of the best investments we can make.”
Behind the Headlines
In the reported quarter, Medical Properties’ rent billed totaled $181 million, increasing 6.6% from the prior-year quarter.
Its straight-line rent revenues were $36.4 million, down marginally from the year-ago quarter.
Income from financing leases of $9.9 million in the third quarter increased 1.5% from the year-ago quarter. Interest and other income were $10.2 million, up 4.8% from the year-ago period.
Medical Properties’ interest expenses were up 24.6% year over year to $132.4 million.
In August 2025, MPW sold two facilities in Arizona with nominal annual cash rent for approximately $50 million.
MPW's Balance Sheet Position
Medical Properties exited the third quarter of 2025 with cash and cash equivalents of $396.6 million, down from $509.8 million as of June 30, 2025.
As of Sept. 30, 2025, it had an adjusted net debt to adjusted annualized EBITDA re ratio of 9.6.
American Tower Corporation (AMT - Free Report) reported its third-quarter 2025 AFFO, attributable to AMT common stockholders per share, of $2.78, beating the Zacks Consensus Estimate of $2.62. This compares favorably with the prior year’s reported figure of $2.64.
Results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. AMT recorded healthy year-over-year organic tenant billings growth of 5% and total tenant billings growth of 5.5%. The company has raised its 2025 FFO outlook.
Welltower Inc.’s (WELL - Free Report) third-quarter 2025 normalized FFO per share of $1.34 surpassed the Zacks Consensus Estimate of $1.30. The reported figure improved 20.7% year over year.
Results reflected a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating portfolio. WELL increased its guidance for 2025 normalized FFO per share.
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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Medical Properties Q2 NFFO Misses Estimates, Revenues Rise Y/Y
Key Takeaways
Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — reported third-quarter 2025 normalized funds from operations (NFFO) per share of 13 cents, missing the Zacks Consensus Estimate of 16 cents. This compared unfavorably with 16 cents per share recorded in the prior-year quarter.
Results reflect a marginal decrease in straight-line rent revenues and an increase in interest expenses. Rent billed, income from financing leases and interest and other income revenues grew year over year.
MPT clocked in revenues of $237.5 million in the third quarter, slightly missing the Zacks Consensus Estimate of $237.8 million. However, the figure increased 5.2% from the year-ago quarter.
Per Edward K. Aldag, Jr., chairman, president and CEO, “With cash rents ramping and increased opportunities to turn low-yielding assets into cash, we have growing flexibility to address our near-term debt maturities. With the added expectation for near-term recoveries from Prospect, we feel comfortable with our liquidity and believe strongly that MPT stock is one of the best investments we can make.”
Behind the Headlines
In the reported quarter, Medical Properties’ rent billed totaled $181 million, increasing 6.6% from the prior-year quarter.
Its straight-line rent revenues were $36.4 million, down marginally from the year-ago quarter.
Income from financing leases of $9.9 million in the third quarter increased 1.5% from the year-ago quarter. Interest and other income were $10.2 million, up 4.8% from the year-ago period.
Medical Properties’ interest expenses were up 24.6% year over year to $132.4 million.
In August 2025, MPW sold two facilities in Arizona with nominal annual cash rent for approximately $50 million.
MPW's Balance Sheet Position
Medical Properties exited the third quarter of 2025 with cash and cash equivalents of $396.6 million, down from $509.8 million as of June 30, 2025.
As of Sept. 30, 2025, it had an adjusted net debt to adjusted annualized EBITDA re ratio of 9.6.
MPW’s Zacks Rank
Medical Properties currently carries a Zacks Rank #2 (Buy). 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
American Tower Corporation (AMT - Free Report) reported its third-quarter 2025 AFFO, attributable to AMT common stockholders per share, of $2.78, beating the Zacks Consensus Estimate of $2.62. This compares favorably with the prior year’s reported figure of $2.64.
Results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. AMT recorded healthy year-over-year organic tenant billings growth of 5% and total tenant billings growth of 5.5%. The company has raised its 2025 FFO outlook.
Welltower Inc.’s (WELL - Free Report) third-quarter 2025 normalized FFO per share of $1.34 surpassed the Zacks Consensus Estimate of $1.30. The reported figure improved 20.7% year over year.
Results reflected a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating portfolio. WELL increased its guidance for 2025 normalized FFO per share.
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.