Wondering if Medical Properties Trust at around $5.50 is a bargain or a value trap? You are not alone. This stock has become a lightning rod for income investors trying to separate recovery potential from real risk.
After a brutal multi year slide, the shares are still down 39.6% over 3 years and 61.6% over 5 years, but they have bounced 37.1% year to date and 43.6% over the last year, including an 11.1% gain in the past month despite a minor 2.0% pullback this week.
That rebound has played out against a backdrop of intense focus on the REIT’s balance sheet, asset sales, and its relationships with key hospital tenants. All of these factors are reshaping how investors see its long term viability. Headlines around debt reduction,…