Healthcare Realty Trust (HR) AI Stock Analysis

• Market Cap: $6.30B
• Dividend Yield: 6.59%
• Average Volume (3M): 3.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: -6.59%
• EPS Growth: 33.35%
• Country: US
• Employees: 550
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): -0.17
• Shares Outstanding: 351,628,700
• 10 Day Avg. Volume: 4,227,298
• 30 Day Avg. Volume: 3,635,448
• PEG Ratio: -0.07
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 4.89
• P/FCF Ratio: 24.53
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 9.41
• Enterprise Value/Gross Profit: 15.34
• Enterprise Value/Ebitda: 19.82
• 1Y Price Target: $19.13
• Price Target Upside: 5.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): -0.6
• Revenue Forecast (FY): $1.16B

• Rating: 57 Neutral
• Price Target: $18.00 ▼(-0.55% Downside)

Healthcare Realty Trust's overall stock score is driven by a mixed financial performance with strong cash flow but declining revenue and profitability. The positive sentiment from the earnings call, highlighting NOI growth and improved leverage, is a significant strength. However, technical indicators suggest bearish momentum, and the valuation reflects ongoing profitability challenges. The company's strategic initiatives and asset dispositions are positive, but restructuring efforts in non-core markets remain a concern.

Positive Factors

Cash Flow Strength

Strong cash flow growth indicates enhanced cash generation capabilities, providing the company with flexibility for investments and debt management.

Improved Leverage

Reduced leverage enhances financial stability and lowers risk, allowing more capital to be allocated towards growth initiatives.

NOI Growth

Consistent NOI growth reflects effective property management and increased demand, supporting long-term revenue stability.

Negative Factors

Declining Revenue

Declining revenue poses a challenge to maintaining profitability and could impact future growth and investment capabilities.

Profitability Challenges

Ongoing profitability issues may hinder the company's ability to reinvest in its business and sustain long-term growth.

High Asset Disposition Volume

Frequent asset sales may indicate operational challenges and could disrupt long-term strategic focus and asset stability.

Healthcare Realty Trust Business Overview & Revenue Model

Company Description

Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of September 30, 2020, the Company owned 211 real estate properties in 24 states totaling 15.5 million square feet and was valued at approximately $5.5 billion. The Company provided leasing and property management services to 11.9 million square feet nationwide.

How the Company Makes Money

Healthcare Realty Trust generates revenue primarily through leasing its properties to healthcare providers, such as hospitals, outpatient clinics, and physician practices. The company earns rental income from long-term leases, which typically provide stable and predictable cash flows. Additionally, HR may benefit from property appreciation and the increasing demand for healthcare services, leading to higher occupancy rates and rental rates. The company also engages in acquisitions of new properties, which can enhance its portfolio and revenue potential. Key partnerships with healthcare providers and a focus on prime locations further contribute to its earnings, as these factors help ensure sustained demand for its real estate assets.

Healthcare Realty Trust Financial Statement Overview

Summary

Healthcare Realty Trust exhibits a mixed financial performance. The income statement shows challenges with declining revenue and profitability, but the balance sheet is stable with low leverage. The cash flow statement is a bright spot, showing strong cash generation and growth. The company needs to address profitability issues to improve overall financial health.

Income Statement

Healthcare Realty Trust's income statement shows a declining revenue trend with a negative revenue growth rate of -2.33% in the TTM. The company is struggling with profitability, as indicated by a negative net profit margin of -26.44% and a negative EBIT margin. However, the gross profit margin remains relatively strong at 61.35%, suggesting some operational efficiency. The EBITDA margin is also robust at 58.32%, indicating good cash earnings potential despite net losses.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.05 in the TTM, indicating low leverage and financial stability. However, the return on equity is negative, reflecting ongoing net losses. The equity ratio is healthy, suggesting a solid asset base funded by equity. Overall, the balance sheet is stable but impacted by profitability challenges.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 119.67% in the TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is strong at 1.94, suggesting efficient cash conversion from operations. The free cash flow to net income ratio is also high, reflecting good cash flow relative to net losses. Overall, cash flow metrics are a positive aspect of the company's financials.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.17B	1.27B	1.34B	932.64M	534.82M	499.63M
Gross Profit	720.59M	756.21M	112.62M	588.60M	322.54M	303.12M
EBITDA	557.59M	755.66M	780.51M	555.62M	287.60M	274.18M
Net Income	-368.22M	-654.49M	-278.26M	-106.00M	14.32M	19.19M
Balance Sheet
Total Assets	9.86B	10.65B	12.64B	13.85B	4.26B	3.81B
Cash, Cash Equivalents and Short-Term Investments	43.34M	68.92M	25.70M	60.96M	13.18M	15.30M
Total Debt	238.88M	4.96B	5.30B	5.70B	1.92B	1.71B
Total Liabilities	5.11B	5.35B	5.71B	6.17B	2.07B	1.86B
Stockholders Equity	4.68B	5.23B	6.82B	7.57B	2.19B	1.95B
Cash Flow
Free Cash Flow	400.53M	252.64M	268.79M	109.20M	131.94M	376.13M
Operating Cash Flow	462.77M	501.62M	499.82M	272.75M	232.63M	470.09M
Investing Cash Flow	603.12M	900.92M	349.14M	1.63B	-562.47M	-555.17M
Financing Cash Flow	-1.05B	-1.36B	-884.22M	-1.86B	327.72M	99.72M

Healthcare Realty Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HR, the sentiment is Positive. The current price of 18.1 is below the 20-day moving average (MA) of 18.20, above the 50-day MA of 18.03, and above the 200-day MA of 16.18, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 49.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HR.

Healthcare Realty Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTRE	79 Outperform	$7.94B	26.50	8.13%	3.58%	59.25%	88.37%
NHI	75 Outperform	$3.58B	24.05	10.87%	4.81%	8.04%	9.20%
SBRA	74 Outperform	$4.70B	25.92	6.29%	6.59%	8.12%	75.95%
AHR	70 Neutral	$8.17B	340.34	1.12%	2.02%	11.80%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HR	57 Neutral	$6.30B	―	-7.26%	6.59%	-6.59%	33.35%
MPW	54 Neutral	$3.03B	―	-14.02%	6.31%	45.56%	73.44%

Healthcare Realty Trust Corporate Events

Healthcare Realty Trust’s Positive Earnings Call Highlights Growth

Healthcare Realty Trust Incorporated’s recent earnings call exuded a positive sentiment, driven by strong NOI growth, improved occupancy rates, and significant asset dispositions. The company showcased effective leverage management and capital readiness for growth opportunities, though challenges persist in non-core markets, indicating ongoing restructuring efforts.

Healthcare Realty Trust Reports Q3 2025 Financial Results

Healthcare Realty Trust reported a GAAP net loss of $0.17 per share for the third quarter of 2025, with Normalized FFO of $0.41 per share and a same-store cash NOI growth of 5.4%, driven by increased occupancy and tenant retention. The company executed leases totaling 1.6 million square feet and completed asset sales worth $404 million, with additional sales under contract, reflecting strategic market exits and property monetizations. The company also advanced its development and redevelopment projects, enhancing its portfolio in key markets. The board approved a dividend of $0.24 per share, and the company increased its guidance for Normalized FFO per share and same-store cash NOI growth for 2025.

The most recent analyst rating on (HR) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Healthcare Realty Trust stock, see the HR Stock Forecast page.