Medical Properties Trust, Inc. MPW — also known as MPT — reported first-quarter 2025 normalized funds from operations (NFFO) per share of 14 cents, missing the Zacks Consensus Estimate of 15 cents. This compared unfavorably with 24 cents per share recorded in the prior-year quarter.

Results reflect a decrease in rent billed and straight-line rent revenues. Also, an increase in interest expenses in the quarter remains a concern.

MPT clocked in revenues of $223.8 million in the first quarter, missing the Zacks Consensus Estimate by 5.1%. The figure declined 17.5% from the year-ago quarter.

Per Edward K. Aldag, Jr., chairman, president and CEO, “Our first quarter transactions and results are the culmination of two years of successful efforts to reduce debt, extend maturities, capture unrealized value, and re-tenant hospital real estate at attractive and sustainable rents. 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.”

Behind the Headlines

In the reported quarter, Medical Properties’ rent billed totaled $165.2 million, decreasing 17.1% from the prior-year quarter.

Its straight-line rent revenues were $40.1 million, down 10.3% from the year-ago quarter.

Income from financing leases of $9.9 million in the first quarter decreased 39.6% from the year-ago quarter. Interest and other income was $8.6 million, down 21.2% from the year-ago period.

Medical Properties’ interest expenses were up 6.5% year over year to $115.8 million.

MPW's Balance Sheet Position

Medical Properties exited the first quarter of 2025 with cash and cash equivalents of $673.5 million, up from $332.3 million as of Dec. 31, 2024.

As of March 31, 2025, it had an adjusted net debt to adjusted annualized EBITDA ratio of 9.9.

MPW’s Zacks Rank

Medical Properties currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Medical Properties Trust, Inc. Price, Consensus and EPS Surprise

Medical Properties Trust, Inc. price-consensus-eps-surprise-chart | Medical Properties Trust, Inc. Quote

Performance of Other REITs

Digital Realty Trust DLR reported first-quarter 2025 core funds from operations (FFO) per share of $1.77, beating the Zacks Consensus Estimate of $1.73. The FFO also increased 6% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Results reflected steady leasing momentum with better rental rates amid rising demand. However, higher operating expenses undermined the performance to an extent. DLR raised its 2025 core FFO guidance range.

Alexandria Real Estate Equities, Inc. ARE reported first-quarter 2025 adjusted funds from operations (AFFO) per share of $2.30, beating the Zacks Consensus Estimate of $2.28. This compares unfavorably to the AFFO of $2.35 reported in the prior year.

Results reflected decent leasing activity and rental rate growth. However, lower occupancy and higher interest expenses year over year undermined the results to some extent. ARE has revised its 2025 outlook.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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