On October 6, 2022, the Bear Cave Newsletter issued an updated report on healthcare REIT, Medical Properties Trust, Inc., alleging “a haphazard assortment of issues including distressed tenants, dubious representations, excessive spending, potential auditor independence issues, and a perplexing undisclosed entity for property management.”
The Bear Cave report also noted problems at Pipeline Health, a for-profit hospital operator that agreed to a 20-year, $215 million sale-leaseback with Medical Properties Trust in July 2021. During its Q2 2021 earnings call, Medical Properties Trust’s CFO told investors, “Pipeline Health has developed a strategy and operational abilities over the last several years that can operate and has operated these hospitals very, very profitably. So we think the downside to these types of investments is very, very limited…” Pipeline Health declared bankruptcy on Monday, October 3rd.
Shares of Medical Properties Trust, Inc. fell more than 6% in intraday trading on October 6, 2022.
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