Medical Properties Trust Stock Plummets Amid Recovery Efforts from Major Tenant
Company faces potential financial instability as it seeks to recover uncollected rents and outstanding loan obligations from Steward Health Care System.
- Medical Properties Trust Inc shares plummeted by 29% after the company announced plans to recover uncollected rents and outstanding loan obligations from Steward Health Care System.
- Steward Health Care System, a major tenant and borrower, plays a crucial role in Medical Properties Trust’s revenue stream, indicating potential financial instability for the company.
- The company's ability to collect from Steward Health Care System will greatly dictate the direction of its stock price in the months to come.
- Medical Properties Trust is expected to write off consolidated straight-line rent receivables of approximately $225 million, its approximately $25 million share of straight-line rent receivables related to the unconsolidated Massachusetts partnership and consolidated unpaid rent receivables of approximately $100 million.
- The company has engaged a financial advisor and a law firm to advise it on options to collect the money that Steward owes.
