Financial Survey: Net Lease Office Properties (NYSE:NLOP) and Medical Properties Trust (NYSE:MPW)

Medical Properties Trust (NYSE:MPW) and Net Lease Office Properties (NYSE:NLOP) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Insider and Institutional Ownership

71.8% of Medical Properties Trust shares are held by institutional investors. Comparatively, 58.3% of Net Lease Office Properties shares are held by institutional investors. 1.5% of Medical Properties Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Medical Properties Trust and Net Lease Office Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medical Properties Trust	$641.32 million	3.89	-$556.48 million	($4.22)	-0.98
Net Lease Office Properties	$160.91 million	2.84	-$131.75 million	N/A	N/A

Net Lease Office Properties has lower revenue, but higher earnings than Medical Properties Trust.

Profitability

This table compares Medical Properties Trust and Net Lease Office Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medical Properties Trust	N/A	-38.83%	-15.05%
Net Lease Office Properties	-122.90%	-30.16%	-17.58%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Medical Properties Trust and Net Lease Office Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medical Properties Trust	0	7	1	0	2.13
Net Lease Office Properties	0	0	1	0	3.00

Medical Properties Trust currently has a consensus target price of $4.92, suggesting a potential upside of 18.47%. Net Lease Office Properties has a consensus target price of $46.00, suggesting a potential upside of 48.87%. Given Net Lease Office Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Net Lease Office Properties is more favorable than Medical Properties Trust.

Dividends

Medical Properties Trust pays an annual dividend of $0.32 per share and has a dividend yield of 7.7%. Net Lease Office Properties pays an annual dividend of $0.34 per share and has a dividend yield of 1.1%. Medical Properties Trust pays out -7.6% of its earnings in the form of a dividend.

Summary

Medical Properties Trust beats Net Lease Office Properties on 8 of the 12 factors compared between the two stocks.

About Medical Properties Trust

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world's largest owners of hospital real estate with 441 facilities and approximately 44,000 licensed beds as of September 30, 2023. Since the end of the third quarter, the Company has sold four facilities and now owns approximately 43,000 licensed beds in nine countries across three continents. MPT's financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations.

About Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.