Healthcare Realty Trust Incorporated (HR)
NYSE:HR
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Healthcare Realty Trust
(NYSE:HR)
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Rating:66Neutral
Price Target:
$22.00
â–²(18.60% Upside)
Action:Reiterated
Date:05/21/26
The score is driven primarily by solid cash generation and an improved leverage profile, supported by a constructive price trend and a positive earnings-call read-through (modestly raised guidance and strong same-store operating metrics). The main offsets are ongoing net losses/weak profitability (making P/E unusable) and momentum indicators that are approaching overbought levels.
Positive Factors
Cash generation
Sustained, improving cash generation provides durable support for dividends, buybacks, redevelopment funding and debt service. Positive FCF growth (+58.5%) can fund capital allocation even with accounting losses, reducing reliance on external capital for near-term growth and liquidity needs.
Negative Factors
Negative net income profile
Persistent negative net income despite solid operating cash flow means accounting losses remain. This compresses reported returns, can limit retained earnings, and may constrain long-term ROE improvement absent continued cash conversion and ongoing margin recovery beneath the operating line.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained, improving cash generation provides durable support for dividends, buybacks, redevelopment funding and debt service. Positive FCF growth (+58.5%) can fund capital allocation even with accounting losses, reducing reliance on external capital for near-term growth and liquidity needs.
Read all positive factors
Healthcare Realty Trust (HR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.09B
Dividend Yield6.56%
Average Volume (3M)4.26M
Price to Earnings (P/E)―
Beta (1Y)0.30
Revenue Growth-6.44%
EPS Growth46.41%
CountryUS
Employees550
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)-0.58
Shares Outstanding346,521,580
10 Day Avg. Volume4,401,453
30 Day Avg. Volume4,261,740
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 Cap1.62
Enterprise Value/Revenue9.90
Enterprise Value/Gross Profit-115.39
Enterprise Value/Ebitda21.21
Forecast
1Y Price Target
$20.86Price Target Upside12.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.06
Revenue Forecast (FY)$1.11B
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
HR makes money primarily by leasing healthcare real estate to tenants and collecting contractual rent. Key revenue streams generally include: (1) Rental and lease income: Long-term leases with healthcare tenants (e.g., physician groups, outpatient...
Healthcare Realty Trust Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational execution and tangible early progress under the new strategy: record leasing, materially improved same-store NOI (6.9%), higher occupancy and retention, accretive redevelopments, disciplined buybacks, and proactive balance sheet actions (delayed draw facility, swaps extension). Management raised guidance modestly but remained conservative. Key near-term challenges include total occupancy still below target (90.5%), some negative lease roll-downs, and an upcoming bond maturity that is being addressed. On balance, the positives — record leasing, robust NOI growth, improved lease economics and capital allocation discipline — materially outweigh the manageable lowlights.Positive Updates
Record Leasing Activity
Signed over 2.0 million square feet across ~290 leases in Q1 (all-time high), with a leasing pipeline of ~1.4 million square feet and a Signed Not Occupied (SNO) pipeline of ~490,000 sq ft (including ~90,000 sq ft in redevelopment lease-up).
Negative Updates
Total Occupancy Still Below Target
Total portfolio occupancy is 90.5%, below the company's 92%–93% target; some lease-up and redevelopment vacancies have yet to convert to stabilized occupancy, creating near-term upside but current drag.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Leasing Activity
Signed over 2.0 million square feet across ~290 leases in Q1 (all-time high), with a leasing pipeline of ~1.4 million square feet and a Signed Not Occupied (SNO) pipeline of ~490,000 sq ft (including ~90,000 sq ft in redevelopment lease-up).
Read all positive updates
Company Guidance
Healthcare Realty raised 2026 guidance modestly, increasing full‑year normalized FFO per share by $0.01 to $1.59–$1.65 (midpoint $1.62) and nudging same‑store cash NOI growth up 25 bps to 3.75%–4.75%; Q1 normalized FFO was $0.41 (Q/Q $0.40), same‑store cash NOI grew 6.9%, same‑store occupancy was 92.3% (total occupancy 90.5%), same‑store margins expanded 60 bps, and 95% of NOI is in the same‑store pool. Management highlighted operating drivers behind the guidance — cash leasing spreads ~4.2% (same‑store re‑leasing >4%), retention 93.5%, >2.0M sq ft leased (290 leases), a 1.4M sq ft leasing pipeline and ~490k sq ft SNO — and reiterated core earnings tracking above 5% excluding prior portfolio optimization. On capital, Q1 repurchases totaled $100M (5.7M shares at $17.38 avg) with $400M buyback capacity remaining, closed a pro rata JV acquisition ~$18M, commenced $31M of new redevelopments (invested $25M), plan to deploy $50M–$100M into the KKR JV, increased uses and funding by $75M, are targeting year‑end leverage in the mid‑5x range, and expect to close a $400M delayed‑draw term loan (SOFR+90bps, all‑in ~4.8%) to refinance a $600M bond (leaving ~ $1B liquidity pro forma and ~$250M commercial paper outstanding).Healthcare Realty Trust Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
63
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.16B | 1.18B | 1.27B | 1.34B | 932.64M | 534.82M |
| Gross Profit | -99.61M | -396.46M | -555.43M | -618.09M | -317.56M | -82.88M |
| EBITDA | 541.80M | 519.96M | 266.62M | 717.28M | 635.71M | 321.90M |
| Net Income | -201.25M | -246.07M | -654.49M | -278.26M | 40.90M | 66.66M |
Balance Sheet | ||||||
| Total Assets | 9.15B | 9.21B | 10.65B | 12.64B | 13.85B | 4.26B |
| Cash, Cash Equivalents and Short-Term Investments | 26.23M | 26.17M | 68.92M | 25.70M | 60.96M | 13.18M |
| Total Debt | 4.34B | 4.15B | 4.96B | 5.30B | 5.70B | 1.92B |
| Total Liabilities | 4.65B | 4.53B | 5.35B | 5.71B | 6.17B | 2.07B |
| Stockholders Equity | 4.44B | 4.62B | 5.23B | 6.82B | 7.57B | 2.19B |
Cash Flow | ||||||
| Free Cash Flow | 140.00M | 126.94M | 252.64M | 268.79M | 109.20M | 131.94M |
| Operating Cash Flow | 462.18M | 457.10M | 501.62M | 499.82M | 272.75M | 232.63M |
| Investing Cash Flow | 704.35M | 710.83M | 900.92M | 349.14M | 1.63B | -562.47M |
| Financing Cash Flow | -1.17B | -1.21B | -1.36B | -884.22M | -1.86B | 327.72M |
Healthcare Realty Trust Technical Analysis
Positive
18.55
Price Trends
18.30
Positive
17.70
Positive
17.38
Positive
Market Momentum
0.65
Negative
72.97
Negative
73.19
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 18.55 is below the 20-day moving average (MA) of 19.50, above the 50-day MA of 18.30, and above the 200-day MA of 17.38, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 72.97 is Negative, neither overbought nor oversold. The STOCH value of 73.19 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $9.80B | 25.48 | 8.67% | 3.56% | 58.48% | 70.32% | |
74 Outperform | $2.00B | 19.11 | 11.79% | 6.70% | 48.96% | 28.05% | |
70 Outperform | $5.31B | 29.65 | 5.61% | 6.47% | 13.50% | 7.25% | |
66 Neutral | $7.09B | -26,352.66 | -4.34% | 6.56% | -6.44% | 46.41% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $3.76B | 24.36 | 9.88% | 4.73% | 16.91% | -1.91% |
* Real Estate Sector Average
HR
Healthcare Realty Trust
20.47
6.85
50.29%
LTC
LTC Properties
39.00
5.82
17.54%
NHI
National Health Investors
77.48
7.91
11.37%
SBRA
Sabra Healthcare REIT
21.06
4.82
29.65%
CTRE
CareTrust REIT
41.49
13.83
49.99%
Healthcare Realty Trust Corporate Events
Executive/Board ChangesShareholder Meetings
Healthcare Realty Trust Shareholders Back Board and Governance
Positive
May 20, 2026
Healthcare Realty Trust reported the results of its annual meeting of stockholders held on May 19, 2026, where approximately 94.32% of outstanding common shares were represented in person or by proxy. Stockholders elected six directors, including ...
Business Operations and StrategyPrivate Placements and Financing
Healthcare Realty Trust Secures New $400 Million Loan Facility
Positive
May 19, 2026
On May 15, 2026, Healthcare Realty Trust and its operating partnership entered into a $400 million senior unsecured delayed draw term loan facility with a syndicate of major banks, featuring a five-year maturity to May 15, 2029, flexible SOFR- or ...
Business Operations and StrategyPrivate Placements and Financing
Healthcare Realty Trust Issues Exchangeable Notes to Bolster Capital
Positive
May 7, 2026
On May 7, 2026, Healthcare Realty Holdings, L.P., a subsidiary of Healthcare Realty Trust Incorporated, issued $700 million of 3.00% senior unsecured exchangeable notes due January 15, 2032, fully and unconditionally guaranteed by the parent and i...
Stock BuybackPrivate Placements and Financing
Healthcare Realty Trust Plans $500 Million Exchangeable Notes Offering
Neutral
May 5, 2026
On May 4, 2026, Healthcare Realty Trust announced that its operating partnership, Healthcare Realty Holdings, L.P., plans a private offering of $500 million in exchangeable senior notes due 2032 to qualified institutional buyers, with an option fo...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Healthcare Realty Trust Posts Strong Q1 2026 Results
Positive
Apr 30, 2026
Healthcare Realty Trust reported its first-quarter 2026 results on April 30, posting normalized funds from operations of $0.41 per diluted share and strong same-store cash NOI growth of 6.9%, alongside high tenant retention and positive cash leasi...
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...
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.