Re: MPW
I have been slowly exiting the position and moving proceeds into SBRA, DOC & own OHI all Medical Reits. I have not looked very deep into MPW earnings and what their AFFO or FFO were. They had an issue w/a property earlier this year but I thought it got resolved.
AI BARD refreshed my memory:
Yes, there were some specific issues with loans on one or more properties of MPW late last year or early 2023. In December 2022, MPW announced that it had entered into forbearance agreements with two of its lenders, Bank of America and Wells Fargo. These forbearance agreements gave MPW until March 31, 2023 to cure certain defaults on its loans. MPW was able to cure these defaults and exit the forbearance agreements in March 2023.
The specific issues with the loans were related to the declining reimbursement rates for healthcare providers. As mentioned above, this is a challenge that the healthcare REIT industry is facing as a whole. The declining reimbursement rates led to lower occupancy and rent growth for MPW's properties, which in turn made it difficult for MPW to meet its debt obligations.
MPW was able to exit the forbearance agreements and avoid defaulting on its loans by taking a number of steps. These steps included:
Selling off some of its properties.
Reducing its dividend.
Borrowing more money.
Getting new financing from new lenders.
These steps allowed MPW to shore up its finances and meet its debt obligations. However, they also put pressure on MPW's FFO and AFFO. In 2023, MPW's FFO fell by 11% and its AFFO fell by 10%.
MPW is still facing some challenges, but it has taken steps to address these challenges. The company has a strong portfolio of properties and a solid financial position. If MPW can continue to grow its occupancy and rent growth, it should be able to stabilize its FFO and AFFO in the future.
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