BIRMINGHAM - Medical Properties Trust Inc . (NYSE:MPW) is actively pursuing recovery of overdue rents from Steward Health Care System after the latter accumulated $50 million in unpaid rent by December 31, 2023. Steward's financial struggles, marked by liquidity issues, prompted the sale of its non-core laboratory business and the procurement of working capital financing to mitigate these challenges.
To support Steward, MPW has provided a tailored bridge loan of $60 million and agreed upon a deferral of rents until asset liquidation or mid-year 2024. These protective measures have resulted in a decline in MPW's stock value.
Medical Properties Trust, a real estate investment trust specializing in hospital properties, has outlined expectations for partial rent payments to recommence in February 2024, with $9 million anticipated in the first quarter and $44 million in the second quarter of the year. The company is taking a proactive approach to manage the impact of Steward's missed payments on its financials.
In Q4 2023, MPW prepared for a significant non-cash charge related to receivables write-off amounting to $225 million due to tenant liquidity issues.
The ongoing situation with Steward Health Care System has raised concerns regarding the remaining 22-year term of their master lease agreement.
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