MPW
I looked at it today. As I found it very interesting. Obviously first of all for this quarter you have to take the .11 gain out. Hence that puts us at about $0.37 for the quarter normalized. Guidance is for normalized FFO to be about $0.35 a quarter on average in the back half so a step down in normalized ffo.
There Portfolio showed a slight improvement in tenant ebitdarm coverage this past quarter, so that is a plus.
Here is the concerns, this is a highly leveraged company, so they are in selling asset mode, a little bit to reduce debt. If you noticed there rate of debt my guess is 3-4% lower than I would expect them to recievegoing foward, and where the real debt starts coming due in 2025 and 2026. So that is a concern.
Furthermore this is the big one, when asked in the CC today, will you cut the divy to fix/improve the balance sheet. The answer they gave was everything is on the table. For me I take that as it is being strongly considered. I don't want to be in there the day they cut the divy which in my opinion looks more likely. Now after it get whacked by that, it might be a good buy after it settles over the next couple of days. I think it is certainly worth watching here, but I'll pass for right now out of worries on the divy, In my opinion they should cut the divy, I think that would help so much So they can reduce debt and improve there balance sheet further. Time will tell. All is just my opinion, and I could always be wrong though.
AI
