4 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 2026 FFO per share has moved 2 cents northward over the past month to 68 cents.

In the past month, shares of this company have gained 4.9% compared to the industry's rise of 1.1%. 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 nine months of 2025, Medical Properties sold five facilities (including two former Steward-operated facilities that were being leased to College Health for nominal rent) and an ancillary facility for aggregate proceeds of around $100 million, resulting in a gain on real estate of nearly $4 million.

Solid Balance Sheet Position: Medical Properties has been trying to enhance its liquidity position and financial strength. As of Nov. 4, 2025, the company had approximately $1.1 billion of liquidity. After the February 2025 refinancing transactions, the company had no debt maturities that came due before the end of 2025.

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 Digital Realty Trust DLR and Prologis PLD, 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 DLR’s 2025 and 2026 FFO per share is pinned at $7.35 and $7.91, respectively. This calls for year-over-year growth of 9.5% for 2025 and 7.6% for 2026.

The Zacks Consensus Estimate for PLD’s 2025 and 2026 FFO per share is pegged at $5.80 and $6.08, respectively. This implies year-over-year growth of 4.3% for 2025 and 4.7% for 2026.

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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