Medical Properties Trust (MPW) appeared on my radar as a part of pair trade with Healthcare Realty Trust (HR) as the short. The idea came from one of my students, I am a former university finance professor.
btw: it's interesting that in Singapore Parkway Life Real Estate Investment Trust (ticker C2PU.SI) is overpriced. If you ask locals why they invest in it, they'll tell you it's because hospitals will always be necessary, making this investment much safer than office spaces or even retail properties.
the more I look at this the more it makes sense to me.
I have one REIT in Singapore (where I am based) that is 5.2% of my portfolio, I think I will split it in half and throw the money at $MPW. I am still researching more to build a better conviction and I guess while I continue to do that, the stock price may go a bit lower given the trend...
I am a retired physician. I worked in Wilke-Barre Pa for 20 years. When I started, the city had 4 hospitals and now there are two. The two smaller ones closed. The larger hospitals added beds so the care, in terms of hospital beds/population didn't change very much. In a nearby small community with a single small hospital, the hospital closed down and residents are now required to travel an additional 30-40 minutes to the nearest facility. The facilities that were hospitals did repurpose. They are not vacant. I have no way of knowing if they are generating less or more rent revenue. My guess would be less, since the properties have a lot of vacant space.
I know nothing about MPW's properties, but unprofitable hospitals can and do close. The notion that a bad tenent will be followed by a better tenant is not a given. It would be great to have a lot more specific information about the so called bad tenants in MPW's portfolio. In some cases, there might be a larger regional hospital might want to lock in patients, and thus take over the hospital. But every case is different.
btw: it's interesting that in Singapore Parkway Life Real Estate Investment Trust (ticker C2PU.SI) is overpriced. If you ask locals why they invest in it, they'll tell you it's because hospitals will always be necessary, making this investment much safer than office spaces or even retail properties.
the more I look at this the more it makes sense to me.
I have one REIT in Singapore (where I am based) that is 5.2% of my portfolio, I think I will split it in half and throw the money at $MPW. I am still researching more to build a better conviction and I guess while I continue to do that, the stock price may go a bit lower given the trend...
I agree, hospitals should have a premium!
I am a retired physician. I worked in Wilke-Barre Pa for 20 years. When I started, the city had 4 hospitals and now there are two. The two smaller ones closed. The larger hospitals added beds so the care, in terms of hospital beds/population didn't change very much. In a nearby small community with a single small hospital, the hospital closed down and residents are now required to travel an additional 30-40 minutes to the nearest facility. The facilities that were hospitals did repurpose. They are not vacant. I have no way of knowing if they are generating less or more rent revenue. My guess would be less, since the properties have a lot of vacant space.
I know nothing about MPW's properties, but unprofitable hospitals can and do close. The notion that a bad tenent will be followed by a better tenant is not a given. It would be great to have a lot more specific information about the so called bad tenants in MPW's portfolio. In some cases, there might be a larger regional hospital might want to lock in patients, and thus take over the hospital. But every case is different.
I m in, I ve just entered and will build up the position.