MPW – Annual Report 2022 Analysis

Author: Viceroy Research Published on: March 17, 2023 Published in: Medical Properties Trust NASDAQ:MPW

March 17, 2023 – On March 1, 2023 MPW released its annual report for 2022. Viceroy’s analysis shows similar red flags to those raised in our Q4 2022 analysis. This report will go through those issues as well as further developments. We reiterate our belief that MPW’s tenant base is in significant financial distress and the company is seriously exposed to tenant failures.

MPW just keeps on giving…to Steward. The company’s promissory note loan to Steward has increased to $220m in five tranches from $44m in three tranches 2021.
Steward announced it would close the Texas Vista Medical Center (TVMC) on May 1, 2023 claiming it had put forward a proposal for UHS and Bexar County to take over operations. UHS response made it clear that MPW was an obstacle their takeover of the operations.
MPW participated in a syndicated term loan facility originated on Priory’s behalf by its purchaser Waterland to the tune of GBP100m. We believe this loan was used to repay MPW’s acquisition loan to Waterland.
The change to asset distribution from non-GAAP to GAAP has highlighted MPW’s massive exposure to financially precarious tenants and shown how these figures were manipulated to mislead investors in the past.

More tenant financing, more issues at Steward and shoddy tenant disclosures, just another day at MPW

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