Key Reasons to Add Medical Properties Stock to Your Portfolio

Medical Properties Trust MPW, also known as MPT, is engaged in acquiring and developing net-leased healthcare facilities. Its properties consist of general acute care hospitals, behavioral health facilities, post-acute care facilities, freestanding ER/urgent care facilities and other assets.

Analysts seem bullish on this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for MPW’s 2025 FFO per share has moved 2 cents northward over the past two months to 63 cents.

In the past three months, shares of this company have gained 23.8% against the industry's decline of 3.1%. Given its solid fundamentals and positive estimate revisions, the stock is likely to keep performing well in the quarters ahead.

Factors That Make Medical Properties Stock a Solid Pick

Favorable Healthcare Industry Fundamentals: The senior citizens’ population is expected to rise in the years ahead. As a result, the national healthcare expenditure by senior citizens, who constitute a major customer base of healthcare services and incur higher healthcare expenditures than the average population, will likely increase in the upcoming period.

Moreover, the healthcare sector is relatively immune to the macroeconomic problems faced by office, retail and apartment companies, and offers stability amid volatility in the market. This is because even amid challenging economic conditions, consumers need to spend on healthcare services while curtailing discretionary purchases.

Long-Term Leasing: Medical Properties leases facilities to healthcare operating companies. These facilities generally have initial fixed lease terms of at least 15 years, with most including five-year renewal options. More than 99% of its leases provide annual rent escalations based on increases in the Consumer Price Index.

Capital Recycling Strategy: Medical Properties disposes of non-core assets and redeploys the proceeds in premium asset acquisitions and accretive development projects. Such efforts also help the company improve its financial position and address the concerns surrounding the tenant base.

During the first six months of 2025, Medical Properties sold three facilities and an ancillary facility for around $48 million, resulting in a gain on real estate of $13.3 million. In the second quarter of 2025, Medical Properties invested around CHF 50 million in the Swiss Medical Network real estate joint venture, part of which was used to acquire a general acute care facility.

Solid Balance Sheet Position: Medical Properties has been trying to enhance its liquidity position and financial strength. As of Aug. 5, 2025, the company had approximately $1.2 billion of liquidity. After the February 2025 refinancing transactions, the company has no debt maturities due in the next 12 months.

Medical Properties’ access to diverse capital sources through capital recycling and internal cash flow provides ample financial flexibility and is likely to support its growth endeavors.

Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are Crown Castle CCI and OUTFRONT Media OUT, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CCI’s 2025 FFO per share has moved 2 cents northward to $4.21 over the past two months.

The Zacks Consensus Estimate for OUT’s 2025 FFO per share has moved a cent upward to $1.89 over the past two months.

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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This article originally published on Zacks Investment Research (zacks.com).

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