Overview

• 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.