Peterson has lowered his FFO estimates on the basis of lower net acquisition volumes as well as a rising interest rate environment, according to a note written to clients. Keep in mind that MPW has underperformed the broader REIT sector in previous tightening cycles given its bond-like structure.

As a result, the analyst has cut his 2022 FFO estimate to $1.82 compared with $1.84 in the prior forecast and the consensus of $1.86. For 2023, Peterson sees FFO at $1.86 vs. $1.89 in the previous view and the Wall Street estimate of $1.94. Through 2024, Peterson is expecting FFO per share to grow at a compounded annual growth rate of +2.8%, down from +8.7% achieved from 2019 through 2021, the note said.

Price target was also lowered to $20 per share, implying 1.6% downside from Thursday's close.