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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: rllee who wrote (38221)	6/8/2010 3:29:16 PM
From: E_K_S	Read Replies (1) \| Respond to of 78659

Hi rlee - RE: Medical Properties Trust, Inc. (NYSE: MPW) Not too sure on the dividend. A lot depends on the additions of new properties they may do this year from the funds they obtained through a secondary ($591 Million issued at $9.50/share). The prospectus stated that any purchase of new properties would be additive to earnings. There is also the possibility of a loan default (I believe around $23Million) which if goes unpaid to the REIT, they may have to write it down which would reduce available cash for distribution. I am assuming the stock has sold off with the rest of the market. There is really no abnormal volume to the downside. The sell off could be due to the end of the lock up period on the secondary and those that bought shares at $9.50/share are bailing out. I have not followed the stock long enough to know how their FCF varies from year to year and quarter to quarter. They do have small overall debt when compared to their peers which is one of the reasons I started a position. Grommit has reviewed a lot of these REITs and this was one that ranked well on his list. EKS