Healthcare Realty Trust (HR) AI Stock Analysis

• Market Cap: $6.15B
• Dividend Yield: 6.48%
• Average Volume (3M): 3.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -7.16%
• EPS Growth: 23.40%
• Country: US
• Employees: 550
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Healthcare Facilities
• EPS (TTM): -0.45
• Shares Outstanding: 351,606,600
• 10 Day Avg. Volume: 3,046,605
• 30 Day Avg. Volume: 3,368,492
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 8.64
• Enterprise Value/Gross Profit: 18.21
• Enterprise Value/Ebitda: 17.38
• 1Y Price Target: $18.17
• Price Target Upside: 0.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 61 Neutral
• Price Target: $17.50 ▼(-3.10% Downside)

Healthcare Realty Trust's overall stock score is driven by strong technical momentum and positive corporate events, which are offset by challenges in financial performance and valuation. The company's strategic initiatives and improved cash flow management are promising, but persistent profitability issues and valuation concerns weigh on the score.

Positive Factors

Earnings Growth

The company's new 3-year plan forecasts solid 10% earnings growth driven by core growth, lease-up, and cost savings.

Financial Performance

The 2Q25 results beat expectations with strong same-store net operating income driven by solid leasing.

Leadership

Scott is expected to bolster HR's leadership team.

Negative Factors

Dividend Challenges

The dividend payout remained challenged at 107%.

Dividend Policy

A potential ~20% dividend cut is likely towards a benchmark 80% AFFO payout ratio.

Guidance Expectations

Guidance maintained below the Street's expectations for normalized FFO.

Healthcare Realty Trust Business Overview & Revenue Model

Company Description

Healthcare Realty Trust (HR) is a real estate investment trust (REIT) that focuses on acquiring, owning, and managing healthcare facilities across the United States. The company primarily invests in outpatient facilities, medical office buildings, and other healthcare-related properties, catering to the growing demand for healthcare services. By providing high-quality real estate solutions in the healthcare sector, HR aims to create value for its shareholders while supporting the needs of healthcare providers and patients.

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 strengths in cash flow management with positive free cash flow growth and strong EBITDA margins. However, persistent net losses and high operational expenses undermine overall profitability, affecting the financial health of the company.

Income Statement

The company has shown a declining revenue trend with a negative revenue growth rate in recent years. The gross profit margin for the TTM is at 47.0%, indicating a strong ability to manage direct costs. However, the net profit margin is significantly negative due to ongoing net losses, suggesting challenges in managing operational and other expenses. The EBIT and EBITDA margins are 15.1% and 61.7% respectively for the TTM, indicating some operational efficiency but not enough to cover all expenses, leading to net losses.

Balance Sheet

The debt-to-equity ratio has improved to 0.06 in the TTM from 0.95 in the previous year, indicating reduced leverage. The return on equity is negative due to net losses, impacting shareholder returns. The equity ratio stands at 48.4%, reflecting a balanced asset financing between liabilities and equity.

Cash Flow

Free cash flow has shown growth, with a positive free cash flow growth rate in the TTM. The operating cash flow to net income and free cash flow to net income ratios are positive, indicating that despite net losses, the company generates sufficient cash flows from operations to cover its investments and financing needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22B	1.25B	1.34B	932.64M	534.82M	499.63M
Gross Profit	579.51M	772.59M	112.62M	588.60M	322.54M	303.12M
EBITDA	607.44M	295.55M	780.51M	555.62M	287.60M	274.18M
Net Income	-391.06M	-654.49M	-278.26M	-106.00M	14.32M	19.19M
Balance Sheet
Total Assets	10.50B	10.65B	12.64B	13.85B	4.26B	3.81B
Cash, Cash Equivalents and Short-Term Investments	25.72M	68.92M	25.70M	60.96M	13.18M	15.30M
Total Debt	5.10B	4.96B	5.30B	5.70B	1.92B	1.71B
Total Liabilities	5.35B	5.35B	5.71B	6.17B	2.07B	1.86B
Stockholders Equity	5.08B	5.23B	6.82B	7.57B	2.19B	1.95B
Cash Flow
Free Cash Flow	205.53M	252.64M	268.79M	109.20M	131.94M	376.13M
Operating Cash Flow	473.25M	501.62M	499.82M	272.75M	232.63M	470.09M
Investing Cash Flow	920.65M	900.92M	349.14M	1.63B	-562.47M	-555.17M
Financing Cash Flow	-1.39B	-1.36B	-884.22M	-1.86B	327.72M	99.72M

Healthcare Realty Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 18.06 is above the 20-day moving average (MA) of 16.91, above the 50-day MA of 16.30, and above the 200-day MA of 15.78, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 77.39 is Negative, neither overbought nor oversold. The STOCH value of 91.33 is Negative, 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	80 Outperform	$7.61B	28.43	8.36%	3.68%	50.84%	104.44%
NHI	79 Outperform	$3.67B	24.66	10.49%	4.59%	6.87%	7.23%
SBRA	74 Outperform	$4.56B	25.03	6.66%	6.31%	6.89%	240.70%
AHR	70 Neutral	$7.29B	―	-1.51%	2.34%	11.62%	―
Sector *	63 Neutral	$7.09B	13.59	-0.50%	6.85%	4.08%	-25.24%
HR	61 Neutral	$6.15B	―	-7.59%	6.48%	-7.16%	23.40%
MPW	49 Neutral	$2.67B	―	-25.97%	6.94%	27.66%	18.03%

Healthcare Realty Trust Corporate Events

Healthcare Realty Trust Reports Q2 2025 Financial Results

Healthcare Realty Trust reported its second-quarter 2025 results, highlighting a GAAP net loss of $0.45 per share and a normalized FFO of $0.41 per share. The company saw improvements in operating metrics, such as a 5.1% growth in cash NOI and a 40 basis point increase in occupancy to 90%. The company executed new and renewal leases totaling 1.5 million square feet and completed asset sales worth $182.4 million. Leadership changes included the appointment of Peter Scott as President and CEO, and a reduction in board size from 12 to 7 members. The company also extended its $1.5 billion revolving credit facility to mature in 2030 and published a strategic plan to enhance shareholder value.

Healthcare Realty Trust Announces New Credit Facility Agreement

On July 31, 2025, Healthcare Realty Trust announced a new credit facility agreement, effective July 25, 2025, which replaces its existing credit arrangements. This new facility includes a $1.5 billion unsecured revolving credit and five term loan tranches totaling $1.115 billion, with extended maturity dates and interest rates tied to the borrower’s credit ratings. The agreement aims to enhance financial flexibility and maintain favorable credit terms, potentially impacting the company’s financial operations and its stakeholders.

Healthcare Realty Trust Announces Board Restructuring

On June 18, 2025, Healthcare Realty Trust announced the voluntary retirement of five directors from its Board, reducing its size from 12 to 7 members. This strategic move aligns the Board’s size with industry standards and reinforces the company’s commitment to best practices in corporate governance. The changes are expected to enhance shareholder engagement and drive value, with the remaining directors focused on strengthening stakeholder relationships and capitalizing on strong industry fundamentals.