Healthcare Realty Trust (HR)
NYSE:HR
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Healthcare Realty Trust
(NYSE:HR)
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Rating:64Neutral
Price Target:
$20.00
â–²(13.57% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by acceptable financial stability (stronger cash generation and improved leverage) but constrained by inconsistent profitability and negative GAAP earnings. Technicals are supportive yet overbought, while valuation benefits from a high dividend yield but is clouded by a negative P/E. Earnings-call commentary is net positive due to improving operations and leasing, though flat FFO guidance and refinancing/leverage headwinds cap the upside.
Positive Factors
Balance-sheet repair
Leverage has been materially reduced with debt very low relative to equity, creating a resilient capital structure. This stronger balance sheet lowers refinancing risk, supports liquidity and ratings stability, and gives management flexibility to fund redevelopments or weather cycles over months.
Negative Factors
Inconsistent profitability
Persistent GAAP losses and recent revenue declines indicate earnings volatility. Over several quarters this limits retained earnings and ROE recovery, constrains long-term dividend uplift potential, and can raise scrutiny from conservative investors and lenders.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet repair
Leverage has been materially reduced with debt very low relative to equity, creating a resilient capital structure. This stronger balance sheet lowers refinancing risk, supports liquidity and ratings stability, and gives management flexibility to fund redevelopments or weather cycles over months.
Read all positive factors
Healthcare Realty Trust (HR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.14B
Dividend Yield6.56%
Average Volume (3M)3.08M
Price to Earnings (P/E)―
Beta (1Y)0.26
Revenue Growth-6.59%
EPS Growth33.35%
CountryUS
Employees550
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.04
Shares Outstanding348,849,900
10 Day Avg. Volume2,592,080
30 Day Avg. Volume3,075,166
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)1.28
Price to Sales (P/S)5.02
P/FCF Ratio46.71
Enterprise Value/Market Cap1.67
Enterprise Value/Revenue8.69
Enterprise Value/Gross Profit-25.86
Enterprise Value/Ebitda19.72
Forecast
1Y Price Target
$20.00Price Target Upside13.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.09
Revenue Forecast (FY)$1.13B
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 Un...
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 predictabl...
Healthcare Realty Trust Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and strategic turnaround story: asset-management overhaul, meaningful leasing volume and pipeline, successful $1.2B disposition program at attractive cap rates, G&A and margin improvements, debt reduction and improved ratings outlook, and clear redevelopment and capital-allocation priorities. Offsetting items included flat 2026 reported FFO at the midpoint (reflecting dilution from dispositions and deleveraging), a rightsized dividend, refinancing at higher coupon assumptions, continued mid-5x leverage, and constrained near-term acquisition activity due to cost-of-capital considerations. On balance, highlights around execution, leasing momentum, margin and balance sheet repair significantly outweigh the lowlights.Positive Updates
Same-Store NOI and FFO Outperformance
Full-year same-store NOI growth of 4.8% (2025) and Q4 same-store cash NOI growth of 5.5%; full-year normalized FFO per share of $1.61, exceeding the midpoint of prior guidance by $0.03; Q4 normalized FFO of $0.40.
Negative Updates
Flat Reported FFO Guidance for 2026
2026 midpoint normalized FFO guidance of $1.61 implies flat year-over-year FFO (2025 normalized FFO $1.61), which management acknowledged could be perceived as underwhelming despite embedded core growth offsetting dilution.
Read all updates
Q4-2025 Updates
Positive
Negative
Same-Store NOI and FFO Outperformance
Full-year same-store NOI growth of 4.8% (2025) and Q4 same-store cash NOI growth of 5.5%; full-year normalized FFO per share of $1.61, exceeding the midpoint of prior guidance by $0.03; Q4 normalized FFO of $0.40.
Read all positive updates
Company Guidance
The company guided normalized FFO of $1.58–$1.64 per share (midpoint $1.61), noting the midpoint implies roughly 5% core earnings growth offset by dilution from 2025 dispositions/deleveraging; same-store cash NOI growth of 3.5%–4.5% driven by lease-up and positive releasing spreads; G&A of $43M–$47M; free cash flow post-dividends of approximately $100M at the midpoint; $175M of asset sales embedded in guidance (including roughly $70M that leaked into early 2026 and a $45M loan repayment expected in late March); sources also include a note receivable maturing early 2026 and modest additional dispositions, while uses include the asset-level capital plan (and the $50M of share repurchases already executed); balance-sheet assumptions include refinancing $600M bonds due August into new bonds in the low-5% coupon area, a new $600M commercial paper program, and full-year leverage targeted in the mid‑5x net debt/EBITDA range; guidance excludes any incremental acquisitions, developments, or share repurchases.Healthcare Realty Trust Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
68
Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.18B | 1.27B | 1.34B | 932.64M | 534.82M |
| Gross Profit | -396.46M | -555.43M | -618.09M | -317.56M | -82.88M |
| EBITDA | 519.96M | 266.62M | 717.28M | 635.71M | 321.90M |
| Net Income | -246.07M | -654.49M | -278.26M | 40.90M | 66.66M |
Balance Sheet | |||||
| Total Assets | 9.21B | 10.65B | 12.64B | 13.85B | 4.26B |
| Cash, Cash Equivalents and Short-Term Investments | 26.17M | 68.92M | 25.70M | 60.96M | 13.18M |
| Total Debt | 4.15B | 4.96B | 5.30B | 5.70B | 1.92B |
| Total Liabilities | 4.53B | 5.35B | 5.71B | 6.17B | 2.07B |
| Stockholders Equity | 4.62B | 5.23B | 6.82B | 7.57B | 2.19B |
Cash Flow | |||||
| Free Cash Flow | 126.94M | 252.64M | 268.79M | 109.20M | 131.94M |
| Operating Cash Flow | 457.10M | 501.62M | 499.82M | 272.75M | 232.63M |
| Investing Cash Flow | 710.83M | 900.92M | 349.14M | 1.63B | -562.47M |
| Financing Cash Flow | -1.21B | -1.36B | -884.22M | -1.86B | 327.72M |
Healthcare Realty Trust Technical Analysis
Positive
17.61
Price Trends
17.57
Positive
17.36
Positive
17.02
Positive
Market Momentum
-0.13
Negative
51.16
Neutral
76.90
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 17.61 is above the 20-day moving average (MA) of 17.55, above the 50-day MA of 17.57, and above the 200-day MA of 17.02, indicating a bullish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 76.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HR.
Healthcare Realty Trust Risk Analysis
Healthcare Realty Trust disclosed 42 risk factors in its most recent earnings report. Healthcare Realty Trust reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Healthcare Realty Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.65B | 18.09 | 8.99% | 3.56% | 59.25% | 88.37% | |
70 Outperform | $4.11B | 25.18 | 9.63% | 4.73% | 8.04% | 9.20% | |
70 Outperform | $5.06B | 29.37 | 5.63% | 6.47% | 8.12% | 75.95% | |
69 Neutral | $1.89B | 13.47 | 11.94% | 6.70% | 11.89% | -68.41% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $6.14B | -24.09 | -5.13% | 6.56% | -6.59% | 33.35% |
* Real Estate Sector Average
HR
Healthcare Realty Trust
17.61
3.35
23.51%
LTC
LTC Properties
39.04
7.41
23.45%
NHI
National Health Investors
84.74
16.41
24.02%
SBRA
Sabra Healthcare REIT
20.08
3.89
24.03%
CTRE
CareTrust REIT
38.77
12.20
45.93%
Healthcare Realty Trust Corporate Events
Business Operations and StrategyFinancial Disclosures
Healthcare Realty Trust Highlights 2025 Results and 2026 Outlook
Positive
Feb 27, 2026
On February 27, 2026, Healthcare Realty Trust released a business update highlighting its 2025 performance and current positioning as the only REIT focused exclusively on the outpatient medical sector, with a $10.7 billion enterprise value, $6.5 b...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Healthcare Realty Trust Reports Q4 Results, Highlights Transformation
Positive
Feb 12, 2026
Healthcare Realty Trust reported fourth-quarter 2025 results on February 12, 2026, highlighting same-store cash NOI growth of 5.5%, strong tenant retention, 1.5 million square feet of lease executions, and GAAP net income of $0.04 per share. For f...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Healthcare Realty Trust Announces New CFO Appointment
Neutral
Jan 7, 2026
On January 7, 2026, Healthcare Realty Trust announced that investment banking veteran Daniel Gabbay will become Executive Vice President and Chief Financial Officer, effective January 12, 2026, based at the company’s Nashville headquarters. ...
Business Operations and StrategyPrivate Placements and Financing
Healthcare Realty Trust Announces $1 Billion Equity Program
Positive
Dec 17, 2025
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 i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.