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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (25896)	11/8/2016 9:22:04 AM
From: E_K_S	Read Replies (1) \| Respond to of 34328

Re: MPW Medical Properties Trust defended at RBC Capital Medical Properties Trust (NYSE: MPW) has sold off sharply off late thanks to the plunge in tenant Adeptus Health, but RBC analyst Michael Carroll says worry is overdone, and MPW is soon to "emerge unscathed." He keeps his Outperform rating and $17 price target (36% upside). ----------------------------------------- Adeptus Health Inc. owns and operates a network of independent freestanding emergency rooms in the United States. As of December 31, 2015, it operated 81 facilities located in the Houston, Dallas/Fort Worth, San Antonio, Austin, Colorado Springs, Denver, and Phoenix. The company was founded in 2002 and is based in Lewisville, Texas. Their stock ADPT is selling at a multi year low of $8.48/share after hitting a year high of $73.44/share. It looks like they may/could have a liquidity issue but was able to re-finance some of their debt due in 2018 and increase their credit facility. The CEO was replaced. MPW owns the facilities and leases them to Adeptus. Adeptus's latest results must have spooked the market and that's the reason for MPW's sell off. Ugly Q3 and lower guidance sinks Adeptus; shares down 63% Adeptus Health (ADPT -63%) Q3 results ($M): Total Revenues: 85.4 (-3.2%); Patient Service Revenue: 70.2 (-30.7%); Management and Contract Services Revenue: 23.6 (+384.1%). Operating Income: (14.5) (-338.9%); Net Income: (11.7) (-885.3); Non-GAAP Net Income: 1.3 (-79.8%); EPS: (0.49) (-999%); Non-GAAP EPS: 0.06 (-80.6%); Non-GAAP EBITDA: 9.7 (-48.1%); CF Ops: (21.3) (-626.3%). 2016 Guidance: Non-GAAP EBITDA: $70M - 80M from $110M - 115M. Net operating income is down big (but still positive). The concern was that ADPT may not make their full lease payments to MPW. --------------------------------------------------------- Could ADPT be an opportunity? It's selling 54% of their BV. I guess their assets are medical equipment but not the real estate (that's owned by MPW). EKS