Medical Properties Trust Sells Utah Hospitals, Uses $886 Million to Pay Down Debt and Reduce Risk

Medical Properties Trust sold its interest in 5 Utah hospitals for $886 million, using proceeds to pay down debt. This validates MPW's underwritten lease base of $1.2 billion.

MPW completed another $350 million hospital sale to Prime Healthcare. Combined with other sales, total liquidity from asset sales in 2022 reaches $1.6 billion.

Debt reduction should lower MPW's net leverage ratio from 7.34 to 6.25, reducing risk for shareholders.

MPW is accelerating efforts to recover obligations from struggling tenant Steward Health Care. Sale of Steward's managed care business would repay debts to MPW.

Despite ongoing issues, MPW has other hidden value like its stake in Prospect Medical Holdings. More sales could further reduce debt and interest costs.