Medical Properties' (MPW) Lease Deal with NOR Healthcare Supports Cash Flow Visibility

Medical Properties Trust Inc. (NYSE:MPW) is one of the most shorted stocks right now. On August 28, Medical Properties Trust Inc. (NYSE:MPW) announced a new lease agreement with NOR Healthcare Systems following its winning bid for Prospect Medical Group’s California operations. The deal encompasses six facilities under a master lease with an initial annualized rent of $45 million, which is broadly in line with Prospect’s previously scheduled 2025 obligations. Rent will be partially deferred during the first year, with repayment spread over the entire lease term.

Medical Properties Trust Inc. (NYSE:MPW) has also committed up to $60 million in seismic upgrades, which will be added to the lease base and generate additional rent at standard yields.

Management highlighted that the arrangement strengthens cash flow visibility, contributing to the company’s target of exceeding $1 billion in pro rata annualized rent by the end of 2026. They also believe that strong interest from multiple operators in acquiring these assets underscores their operating resilience and history of profitability.

Medical Properties Trust Inc. (NYSE:MPW) is a real estate investment trust specializing in owning and leasing hospitals and healthcare facilities across the U.S. and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.