Shares of Medical Properties Trust (MPW) surged 5.35% in pre-market trading on Thursday, following the release of its third-quarter results and the announcement of a strategic stock repurchase program. Despite reporting a net loss, investors appeared to focus on positive developments and future outlook.
The healthcare real estate investment trust reported a net loss of $0.13 per share for Q3 2025, which included approximately $82 million in impairment charges primarily related to certain Prospect Medical Group bankruptcy transactions. However, the company's Normalized Funds from Operations (NFFO) came in at $0.13 per share, slightly beating analyst expectations.
Several factors contributed to the stock's positive movement. First, Medical Properties Trust announced a $150 million strategic common stock repurchase program, signaling confidence in the company's value. Additionally, the company reported improved cash rent collections, which increased to $16 million in Q3 from $11 million in Q2, with expectations of reaching $22 million in Q4. The company also agreed in principle to a lease with NOR Healthcare Systems for California operations, expected to stabilize annual cash rent at $45 million. Looking ahead, Medical Properties Trust projects annualized cash rent to exceed $1 billion by the end of 2026, providing a positive outlook for investors.
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