Medical Properties Trust cuts quarterly dividend to 15c per share

Medical Properties Trust announced that its board of directors has adopted an updated capital allocation strategy designed to significantly strengthen its balance sheet, lower its cost of capital, and position MPT for long-term shareholder value creation. Over the past eighteen months, MPT has completed several transactions that have resulted in lower adjusted funds from operations, including its partnership with Macquarie Asset Management for eight Massachusetts hospitals, Prime Healthcare’s repurchase of 14 facilities, and the sale of seven Australian hospitals. The company is declaring a quarterly cash dividend or 15c per diluted share, which will be paid on October 12 to shareholders of record as of September 14. In setting this new dividend level, the board has carefully considered the dilutive effects of recent and pending dispositions and recapitalization transactions, while targeting an initial payout of projected near-term AFFO of less than 60%. Importantly, only anticipated cash rent scheduled to be paid on Prospect’s California leased hospitals is included in this estimate. MPT plans to scale back discretionary operating expenses and other costs for better alignment with the reduction of both its asset base and its near-term acquisition activities.