Miller Value Partners, an investment management company, released its “Income Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned 1.85% (net of fees) outperforming the ICE BofA US High Yield Index’s 0.54% return and the S&P 500 Index’s -3.27% return. There is a weakness in the global market which is largely tied to rates continuing their parabolic move higher. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Income Strategy highlighted stocks like Medical Properties Trust, Inc. (NYSE:MPW) in the third quarter 2023 investor letter. Medical Properties Trust, Inc. (NYSE:MPW) is a real estate investment trust that acquires and develops net-leased healthcare facilities. On October 18, 2023, Medical Properties Trust, Inc. (NYSE:MPW) stock closed at $4.75 per share. One-month return of Medical Properties Trust, Inc. (NYSE:MPW) was -10.55%, and its shares lost 56.78% of their value over the last 52 weeks. Medical Properties Trust, Inc. (NYSE:MPW) has a market capitalization of $2.842 billion.
Miller Value Income Strategy made the following comment about Medical Properties Trust, Inc. (NYSE:MPW) in its Q3 2023 investor letter:
“Medical Properties Trust, Inc. (NYSE:MPW) was the top detractor during the quarter. The health care real estate investment trust (REIT) reported 2Q23 revenue of $337.4MM, -15.7% Y/Y, below consensus of $351.3M, and Normalized Funds from Operations (FFO) per share of $0.48, +4.3% Y/Y, ahead of consensus of $0.38. The company ended the quarter with total debt of $10.3B and an Adjusted Net Debt to Adjusted Annualized Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (EBITDAre) ratio of 6.8x, compared to 6.3x at the end of 2Q22. The company announced an updated capital allocation strategy going forward, which includes: i) a ~48% quarterly dividend cut to $0.15/share (11.0% annualized yield), ii) the pursuit of refinancing, asset sales, and joint[1]venture opportunities that bolster liquidity and enable the repayment of debt, and iii) a reduction in discretionary operating expenses and other costs for better alignment with the expected decrease in the company’s asset base and near-term acquisition activities. Management also continues to target a long-term Net Debt to Adjusted EBITDAre leverage ratio of 5-6x. Management revised FY23 guidance for normalized FFO/share of $1.55 (vs. prior guidance of $1.58), or a P/FFO of 3.5x.”
Medical Properties Trust, Inc. (NYSE:MPW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Medical Properties Trust, Inc. (NYSE:MPW) at the end of second quarter which was 21 in the previous quarter.
We discussed Medical Properties Trust, Inc. (NYSE:MPW) in another article and shared the list of stocks with highest dividend. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
