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Medical Properties Stock Rises 27% in 3 Months: Will the Trend Last?

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Key Takeaways

  • Medical Properties shares jumped 27.8% in three months, far outpacing the industry's 0.1% rise.
  • The REIT benefits from long-term leases and aims for $1B in annualized cash rent by 2026.
  • Sell-offs, refinancing and $1.1B in liquidity strengthen Medical Properties' financial flexibility.

Shares of Medical Properties Trust (MPW - Free Report) — also known as MPT — have gained 27.8% in the past three months, outperforming the industry’s growth of 0.1%.

This healthcare real estate investment trust (REIT), carrying a Zacks Rank #3 (Hold), is engaged in acquiring and developing net-leased healthcare facilities. Its properties consist of general acute care hospitals, behavioral health facilities, post-acute care facilities, freestanding ER/urgent care facilities and other assets.

 

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Let us decipher the possible factors behind the surge in the stock price.

The senior citizens’ population is expected to rise in the years ahead. As a result, the national healthcare expenditure by senior citizens, who constitute a major customer base of healthcare services and incur higher healthcare expenditures than the average population, will likely increase in the upcoming period.

Moreover, the healthcare sector is relatively immune to the macroeconomic problems faced by office, retail and apartment companies and offers stability to the company amid volatility in the market. This is because even amid tough economic conditions, consumers need to spend on healthcare services while curtailing discretionary purchases.

Medical Properties leases facilities to healthcare operating companies. These facilities generally have initial fixed lease terms of at least 15 years, with most including five-year renewal options. More than 99% of its leases provide annual rent escalations based on increases in the Consumer Price Index. The company is confident in its ability to generate total annualized cash rent of more than $1 billion by year-end 2026.

Strategic sell-outs provide the company with the dry powder to reinvest in opportunistic developments and redevelopments. During the first nine months of 2025, Medical Properties sold five facilities (including two former Steward-operated facilities that were being leased to College Health for nominal rent) and an ancillary facility for aggregate proceeds of around $100 million, resulting in a gain on real estate of nearly $4 million.

Medical Properties has been making efforts to enhance its liquidity position and financial strength. As of Nov. 4, 2025, the company had approximately $1.1 billion of liquidity. After the February 2025 refinancing transactions, the company has no debt maturities coming due this year. Its access to diverse capital sources through capital recycling and internal cash flow provides ample financial flexibility and is likely to support its growth endeavors.

With the factors mentioned above, the positive trend in the stock is expected to continue in the near term.

Key Risks for MPW

Operator concentration risk, potential tenant bankruptcies and substantial debt burden remain concerns for Medical Properties.

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Cousins Properties (CUZ - Free Report) and Digital Realty Trust (DLR - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CUZ’s 2025 FFO per share has moved a cent northward to $2.83 over the past two months.

The Zacks Consensus Estimate for DLR’s 2025 FFO per share has moved 6 cents upward to $7.35 over the past month.

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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