Medical Properties Suspends Cash Dividend
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Medical Properties Inc., an Encino real-estate investment trust that invests in health-care facilities, last month suspended its 18-cent-per-share quarterly cash dividend to meet its short-term debt obligations.
Medical Properties President William Hartauer said his company’s financial problems are tied to Nu-Med Inc., the Encino parent of Medical Properties’ biggest hospital tenant, which wants to renegotiate the hospital’s lease. The hospital, which Hartauer would not identify, accounts for 84% of Medical Properties’ rental income and has been experiencing a negative cash flow, he said.
Separately, Medical Properties said its third-quarter net income rose 12% on nearly flat revenues of $1.34 million. For the nine months that ended Sept. 30, Medical Properties’ profit inched up 2% to $1.3 million from $1.27 million last year. Revenues for the first three quarters remained flat at $4 million.
Medical Properties said it has hired a financial evaluation firm to review the financial condition of Nu-Med and its subsidiaries.
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