Why Healthcare REIT Stocks Are Soaring Today

shares medical estate trust (NYSE:MPW) It rose 18.6% on Wednesday. The largest tenants are mainly medical institutions. real estate investment trust (real estate investment trust) announces sale of its physician network to UnitedHealth (NYSE:UNH) Subsidiary Optum.

Healthcare real estate’s largest tenants may finally be able to pay their bills

first in a story According to the Boston Globe Late yesterday, embattled hospital operator Steward Health Care had reached a deal to divest its national network of doctors to UnitedHealth’s Optum unit. Specific terms of the deal were not disclosed. But given that Steward Health Care has not paid rent to Medical Properties in recent quarters, that the trust has struggled with financial difficulties, and that Steward previously accounted for 20% of Medical Properties Trust’s total revenue, the prospect that Steward could catch up is a plus for Medical Properties. Trust’s share price is understandably higher. its overdue obligations.

Medical Properties Trust previously cut its August dividend by nearly 50% to $0.15 per share due to Steward Health Care’s inability to pay rent. In a January update, Medical Properties Trust revealed that Steward owed the REIT a total of $50 million in unpaid rent through the end of 2023.

What’s next for healthcare property trust investors?

Steward Health Care’s deal has not yet been finalized; the deal is widely expected to face resistance from antitrust regulators concerned about Optum’s Recent consecutive acquisitions Competition could threaten the nation.

But if the deal passes regulatory scrutiny, it could be a huge boon to healthcare REIT investors, who watch helplessly as the company’s single largest tenant misses out on huge rent payments.

Should you invest $1,000 in Medical Properties Trust now?

Before buying shares of Medical Properties Trust, consider the following factors:

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Steve Symington No positions are held in any of the stocks listed above. The Motley Fool recommends UnitedHealth Group. Motley Fool has disclosure policy.

Why Healthcare REIT Stocks Are Soaring Today Originally published by The Motley Fool

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