Healthcare Realty Trust (HR) AI Stock Analysis

• Market Cap: $6.02B
• Dividend Yield: 6.44%
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• 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: 3,058,839
• 30 Day Avg. Volume: 2,738,804
• 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: 1.84
• Enterprise Value/Revenue: 9.33
• Enterprise Value/Gross Profit: 15.10
• Enterprise Value/Ebitda: 22.58
• 1Y Price Target: $19.50
• Price Target Upside: 14.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -0.65
• Revenue Forecast (FY): $1.16B

• Rating: 56 Neutral
• Price Target: $17.50 ▲(2.52% Upside)

Healthcare Realty Trust's overall stock score is driven by its mixed financial performance and bearish technical indicators. The earnings call provides a positive outlook with strong NOI growth and improved leverage, but ongoing profitability challenges and a high volume of asset dispositions weigh on the score. The attractive dividend yield offers some valuation support, but the negative P/E ratio reflects underlying financial difficulties.

Positive Factors

Strong Cash Flow Generation

The strong cash flow generation indicates efficient operations and provides the company with the flexibility to invest in growth opportunities and manage debt effectively.

Improved Occupancy Rates

Higher occupancy rates suggest improved demand for healthcare facilities, enhancing revenue stability and supporting long-term lease agreements.

Equity Program for Growth

The equity program provides capital for growth initiatives and debt repayment, strengthening the company's financial position and market competitiveness.

Negative Factors

Declining Revenue Trend

A declining revenue trend can hinder long-term growth prospects and indicates challenges in maintaining market share and competitive positioning.

High Asset Disposition Volume

Frequent asset sales may indicate underlying operational challenges and could disrupt revenue streams, impacting long-term stability.

Profitability Challenges

Ongoing profitability challenges can strain financial resources and limit the ability to reinvest in business growth and innovation.

Healthcare Realty Trust Business Overview & Revenue Model

Company Description

Healthcare Realty Trust (HR) is a real estate investment trust (REIT) focused on acquiring, owning, and managing healthcare-related properties. Established to serve the growing demand for healthcare facilities, the company primarily invests in outpatient medical office buildings, inpatient rehabilitation facilities, and other healthcare properties located near or on hospital campuses. With a strategic emphasis on long-term leases and relationships with healthcare providers, HR aims to provide a stable income stream for its investors while supporting the healthcare sector's infrastructure needs.

How the Company Makes Money

Healthcare Realty Trust generates revenue primarily through the leasing of its healthcare properties to medical providers and organizations. The company's revenue model is based on long-term lease agreements, often structured to provide predictable cash flows. Key revenue streams include rental income from tenants, which typically consists of base rent and, in some cases, additional charges for property-related expenses. The company also benefits from strategic partnerships with healthcare systems and providers, leading to increased occupancy rates and stable lease renewals. Furthermore, HR may engage in property acquisitions and developments that can enhance its portfolio, thereby contributing to revenue growth over time. Overall, the company's focus on the healthcare sector, combined with its real estate expertise, positions it to capitalize on the increasing demand for healthcare facilities and services.

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	1.18B	1.25B	1.33B	918.93M	524.53M	499.63M
Gross Profit	732.10M	775.72M	825.88M	574.89M	312.25M	303.12M
EBITDA	489.55M	295.55M	741.80M	666.71M	326.30M	323.19M
Net Income	-367.31M	-654.49M	-278.26M	40.90M	66.66M	72.19M
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	4.72B	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	219.16M	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	603.00M	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: Negative
• Last Price: 17.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HR, the sentiment is Negative. The current price of 17.07 is below the 20-day moving average (MA) of 17.56, below the 50-day MA of 17.81, and above the 200-day MA of 16.26, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 15.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HR.

Healthcare Realty Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTRE	80 Outperform	$8.11B	27.08	8.13%	3.56%	59.25%	88.37%
NHI	77 Outperform	$3.69B	24.45	10.87%	4.67%	8.04%	9.20%
SBRA	77 Outperform	$4.70B	25.92	6.29%	6.37%	8.12%	75.95%
LTC	70 Neutral	$1.64B	47.24	3.49%	6.63%	11.89%	-68.41%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HR	56 Neutral	$6.02B	-16.13	-7.26%	6.44%	-6.59%	33.35%
MPW	55 Neutral	$2.95B	―	-14.02%	6.50%	45.56%	73.44%

Healthcare Realty Trust Corporate Events

Healthcare Realty Trust Announces $1 Billion Equity Program

On December 17, 2025, Healthcare Realty Trust announced it entered equity distribution agreements and master forward confirmations with several financial firms for an equity offering program worth up to $1 billion. The move allows the company to issue Class A common stock and potentially engage in forward sale agreements to generate proceeds for general corporate purposes, including healthcare facility projects and debt repayment, reflecting a strategic step to secure capital for growth and strengthen its market positioning.

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.