The company entered the year with $235 million in cash and received a $205 million loan repayment last month.

While $483.3 million of debt matures this year, it has the money to repay that debt if it can't refinance at an attractive rate. That would allow it to retain more cash for debt reduction or to make accretive investments.įurther, it has adequate liquidity to get through the current rough patch. The REIT might be better off in the long run if it reduced its payout. However, that doesn't mean it will, nor that it should. While that's not ideal, the company can maintain its dividend. Its dividend payout ratio would be about 90%. Its finances are relatively healthyĮven at the low end of its outlook, Medical Properties Trust would generate enough cash flow to cover its dividend. Furthermore, the company should ultimately recover most, if not all, of its investment and rental income.

However, it has enough of a cushion to absorb this blow. The company's issues with Prospect and other tenants will impact its cash flow in the near term. Meanwhile, the high-end is its base case that it recognizes most of the rent from that company's California and Connecticut properties but none from its Pennsylvania investments. The low end of that estimate represents a worst-case scenario where the company doesn't collect any rent from Prospect.

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