Shares of Medical Properties Trust (MPW) surged 5.07% in pre-market trading on Thursday following the release of its first-quarter 2025 results, which exceeded analyst expectations despite showing a year-over-year decline in revenue.

The healthcare real estate investment trust reported a net loss of $0.20 per share for the quarter ended March 31, 2025. However, the company's normalized funds from operations (FFO) came in at $0.14 per share, significantly beating the FactSet consensus estimate of $0.09 per share. This outperformance helped drive the stock's pre-market rally, as investors focused on the stronger-than-anticipated FFO figure.

While Medical Properties Trust's revenue fell 17.5% year-over-year to $223.8 million, the company highlighted several positive developments in its earnings release. Notably, MPW completed a well-oversubscribed private offering of more than $2.5 billion of senior secured notes due in 2032, which is expected to strengthen its financial position. Additionally, CEO Edward K. Aldag, Jr. expressed optimism about the company's future, stating, "MPT is well positioned to grow earnings from our existing in-place real estate portfolio, access capital for accretive growth in a uniquely attractive market and deliver growing dividends and other returns to our shareholders." This positive outlook, combined with the better-than-expected FFO, appears to have boosted investor confidence and contributed to the stock's significant pre-market gain.