MPT

MPT is a healthcare REIT clawing back from a near-death tenant crisis, and the 2025 numbers show the bleeding slowing rather than a return to health. Net loss narrowed 88.5% to -$277M from -$2.41B as real-estate impairments collapsed to $194M from $1.83B, and FFO swung positive to $184M from -$1.40B. Normalized FFO of $346M ($0.58/share) more than covers the dividend (cut again to $0.33 from $0.46) and puts the $4.62 stock at roughly 8x normalized FFO with a ~7% covered yield — a genuinely cheap multiple if the operating base has stabilized. That is the bull case, and it is not nothing: cash nearly doubled to $541M, and the portfolio is now spread across 373 leased/loaned properties and 52 operators with 2.0% minimum escalators plus CPI kickers.

The problem is the balance sheet and the trajectory of the top line. Revenue fell again to $972M (-2.4%) and is down ~37% from the $1.54B peak of 2021-22 as troubled tenants were resolved and assets sold — this is a shrinking, not growing, rent roll. Meanwhile debt rose 9.6% to $9.70B and interest expense jumped to $510M, now consuming 52% of total revenue and up from $418M a year ago. Operating cash flow is only $231M and fell 6%. Equity eroded to $4.61B against a -$4.14B accumulated deficit, leaving liabilities at 2.26x equity. A REIT carrying this much debt into a higher-rate refinancing wall, while revenue still declines, is structurally fragile regardless of the headline FFO recovery.