Miller Value Partners, an investment management company, released its “Income Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the strategy returned -3.51% net of fees compared to a 3.72 % return for the ICE Bank of America High Yield Index and 7.50% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Partners Income Strategy highlighted stocks like Medical Properties Trust, Inc. (NYSE:MPW) in the first 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 April 17, 2023, Medical Properties Trust, Inc. (NYSE:MPW) stock closed at $8.53 per share. One-month return of Medical Properties Trust, Inc. (NYSE:MPW) was 8.11%, and its shares lost 56.30% of their value over the last 52 weeks. Medical Properties Trust, Inc. (NYSE:MPW) has a market capitalization of $5.103 billion.
Miller Value Partners Income Strategy made the following comment about Medical Properties Trust, Inc. (NYSE:MPW) in its Q1 2023 investor letter:
“Medical Properties Trust, Inc. (NYSE:MPW) fell during the period after it reported 4Q22 revenue of $380.5MM, -7.0% Y/Y, ahead of consensus of $379.0MM, and Normalized FFO/share of $0.43, -8.5% Y/Y, in-line with consensus. In February, the REIT announced it entered into a $1.2B sale-leaseback transaction, in which CommonSpirit Health will acquire and lease MPW’s Utah hospital portfolio, which is currently operated by Steward Health Care. This transaction allows Medical Properties Trust to add a new high-quality tenant, and also reduce the REIT’s tenant concentration from Steward, which previously accounted for ~20-25% of total revenues, in exchange for a rental rate step-down, which management indicated is a reflection of CommonSpirit’s A-rated credit, rather than a reflection of the cash flow generating capabilities of the relevant hospitals. Management maintained its quarterly dividend of $0.29/share, implying an annualized yield of 14.1%, and guided for FY23 Normalized FFO/share of $1.58 (-13.2% Y/Y), implying a P/FFO multiple of 5.2x, at the midpoint.”
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Medical Properties Trust, Inc. (NYSE:MPW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Medical Properties Trust, Inc. (NYSE:MPW) at the end of the fourth quarter which was 23 in the previous quarter.
We discussed Medical Properties Trust, Inc. (NYSE:MPW) in another article and shared the list of best 5% dividend stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 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.
