Medical Properties Q2 NFFO Misses Estimates, Revenues Fall Y/Y

Medical Properties Trust, Inc. MPW — also known as MPT — reported second-quarter 2025 normalized funds from operations (NFFO) per share of 14 cents, missing the Zacks Consensus Estimate of 15 cents. This compared unfavorably with 23 cents per share recorded in the prior-year quarter.

Results reflect a decrease in rent billed, income from financing leases and interest and other income revenues. Also, an increase in interest expenses in the quarter remains a concern. However, a rise in straight-line rent revenues supported the results to some extent.

MPT clocked in revenues of $240.4 million in the second quarter, beating the Zacks Consensus Estimate of $228.6 million. However, the figure declined 9.8% from the year-ago quarter.

Per Edward K. Aldag, Jr., chairman, president and CEO, “During the quarter, our portfolio of new operators continued to successfully ramp operations around the country. As expected, rental income from these operators increased significantly quarter-over-quarter and, in turn, we remain confident in our visibility to annualized pro rata cash rent of more than $1 billion by the fourth quarter of 2026.”

Behind the Headlines

In the reported quarter, Medical Properties’ rent billed totaled $177.9 million, decreasing 3.2% from the prior-year quarter.

Its straight-line rent revenues were $39.7 million, up 3.3% from the year-ago quarter.

Income from financing leases of $9.9 million in the second quarter decreased 64.1% from the year-ago quarter. Interest and other income were $12.9 million, down 23% from the year-ago period.

Medical Properties’ interest expenses were up 27.9% year over year to $129.7 million.

In the second quarter, MPW sold a post-acute facility with the most recent annualized cash rents of nearly $4 million for aggregate proceeds of around $28 million and an approximate $5 million real estate gain.

MPW's Balance Sheet Position

Medical Properties exited the second quarter of 2025 with cash and cash equivalents of $509.8 million, down from $673.5 million as of March 31, 2025.

As of June 30, 2025, it had an adjusted net debt to adjusted annualized EBITDA ratio of 9.6.

MPW’s Zacks Rank

Medical Properties currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Medical Properties Trust, Inc. Price, Consensus and EPS Surprise

Medical Properties Trust, Inc. price-consensus-eps-surprise-chart | Medical Properties Trust, Inc. Quote

Performance of Other REITs

American Tower Corporation AMT reported its second-quarter 2025 adjusted FFO, attributable to AMT common stockholders per share, of $2.60, meeting the Zacks Consensus Estimate. This compares favorably with the prior year’s reported figure of $2.54.

Results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. AMT recorded healthy year-over-year organic tenant billings growth of 4.7% and total tenant billings growth of 5.2%.

Digital Realty Trust DLR reported second-quarter 2025 core FFO per share of $1.87, beating the Zacks Consensus Estimate of $1.74. FFO per share also increased 13.3% year over year.

DLR’s result reflected steady leasing momentum with better rental rates amid rising demand. The company raised its 2025 core FFO guidance range.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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