Medical Properties Trust (NYSE: MPW) expanded aggressively when interest rates were low. The real estate investment trust (REIT) took on a lot of debt to build one of the world’s largest portfolios of hospital real estate. That rapid growth allowed the REIT to grow its dividend. Unfortunately, the healthcare REIT’s strategy backfired when rates surged, and some of its top tenants experienced severe financial issues. As a result, the REIT has had to backpedal by selling properties to shore up its financial situation. It recently took another step forward, which bodes well for its ability to maintain its 11.5%-yielding dividend.Another sale in the booksMedical Properties Trust recently announced the sale of the 50-bed Arizona General Hospital in Mesa, Arizona, and seven freestanding emergency department facilities in the Phoenix area. Dignity Health is paying $160 million for the portfolio, which values the properties at a sub-7.5% real estate capitalization rate. Medical Properties plans to use those proceeds to reduce debt and for general corporate purposes.The REIT invested $92 million to fund the initial development of these properties between 2015 and 2017 for the previous tenant, Adeptus. However, Adeptus filed for bankruptcy in 2017. Dignity Health leased the facilities from Medical Properties Trust shortly after that. The profitable exit from this investment once again showcases that the REIT owns high-quality properties that other operators value highly.The sale continues Medical Properties Trust’s strategy of bolstering its liquidity this year. It initially expected to close $2 billion in liquidity transactions by year-end. However, it has now raised over $2.5 billion, including closing a 10-year, $800 million loan secured by a portion of its U.K. property portfolio and receiving $1.1 billion of proceeds from s …
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