Meditrust Reports $83.4 Million Loss

If you really can gain through pain, the Meditrust Cos. probably has a bright future ahead of it. Mid-year figures released yesterday by the paired-share REIT shows red ink continuing to flow as the organization implements a five-point plan aimed at restoring it to fiscal health.

For the three months ended June 30th, Meditrust is reporting a loss from continued operations of $83.4 million versus income of $47.6 million for the same period last year. Company officials cite expenses from the five-point plan as a key reason for the loss, including professional and advisory fees and costs arising from the early repayment and modification of certain debt.

Revenues for the second quarter were also down from 1999, with Meditrust reporting $219.4 million in 2000, compared to $329.7 million. The decline was attributed to a decrease in healthcare assets from 394 on June 30th, 1999 to 310 at present. A major tenet of the reorganization plan is for Meditrust to divest itself of a large portion of its healthcare assets to focus on the lodging industry and its recent purchase of the La Quinta hotel chain.