Medical Properties Trust price target raised to $15 from $12 at RBC Capital RBC Capital believes that Medical Properties' strong EBITDAR coverage ratio should help protect the company's cash flow stream.despite near-term Medicare rate pressures. The firm raised its operating FFO estimates and maintains an Outperform rating.
Medical Properties Trust sees FY16 normalized FFO $1.29-$1.33, consensus $1.33 The company is introducing a new annual guidance methodology that will no longer present pro forma run rate estimates. Commencing with calendar year 2016, MPT will estimate Normalized FFO based on management's present investment, capital and operating strategies and the expected timing of each. The major assumptions underlying this estimate include $500M of permanent financing, approximately $500M of divestitures, and funding of current commitments in hospital real estate.