![]() MPW as a company exists to make money, not to give it away. "Since the pandemic began, MPT has struck a series of deals involving Steward and its chief executive that together resulted in hundreds of millions of dollars flowing from MPT to Steward." Perhaps the portion of the WSJ article that I found most misleading was an insinuation that MPW was somehow giving money to Steward to keep It afloat. It is neither great nor reason for concern.Ĭompare this to Ventas ( VTR) which has 1.1X EBITDAR coverage for its senior housing which is the bulk of its portfolio. Steward, which represents 19% of our portfolio on a pro forma basis, continues to perform well, with coverage near 3x"ģX is normal, healthy, middle of the pack coverage. "Now I'd like to provide some updates on some of our largest operators. On the 4Q21 conference call, Ed Aldag (MPW CEO) reported the EBITDAR coverage ratio of Steward. I don't really see what relevance Steward's 2017-2020 losses have in comparison to newer information. New information trumps old information.Steward has paid rent in full to MPW and continues to do so. Steward losses do not translate to MPW losses.It is quite common for companies in growth mode to have large GAAP losses (such as Amazon through much of its history). GAAP earnings are often not reflective of the financial success of a company.The information may be factually correct, but it has been distorted to suggest a level of distress that just isn't present. I debunked it then on Portfolio Income Solutions and I guess I will have to debunk it again since the disinformation has resurfaced. These are the same losses referenced in his previous article. "Steward lost more than $800 million between 20" The $800 million of losses at Steward referenced in the subtitle of his article are from 2017-2020. This new bearish article seems strangely similar to an article run in the Wall Street Journal back in June of 2021 by the same author, Brian Spegele. I simply see no merit to the WSJ article and view the 5% decline in market price that it caused as an opportunity. I bring this up because this rebuttal is not a knee-jerk response defending a company in which I am invested. In fact, I would be happy with the source for bringing to my attention information that I had missed. If someone uncovers real problems at a company I will see that as an early warning and get out. As such, I have exactly zero loyalty to the companies in the portfolio. I am honestly a bit surprised at how much the stock responded to the WSJ Article but it was down 5% over the 2-day period with no other material news so that is my best guess as to the cause.Īs an investor, my only goal is to produce a strong return without taking on undue risk. ![]()
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