Healthcare Realty Trust (HR) AI Stock Analysis

• Market Cap: $5.58B
• Dividend Yield: 7.8%
• Average Volume (3M): 2.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -5.62%
• EPS Growth: -140.10%
• Country: US
• Employees: 550
• Sector: Real Estate
• Sector Strength: 80
• Industry: REIT - Healthcare Facilities
• EPS (TTM): -1.78
• Shares Outstanding: 350,996,150
• 10 Day Avg. Volume: 2,622,312
• 30 Day Avg. Volume: 2,890,356
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 14.43
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.92
• Price Target Upside: 17.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

Healthcare Realty Trust's overall stock score reflects significant financial and technical challenges, primarily due to ongoing net losses and bearish technical indicators. Despite robust cash flow and strategic leasing activities, the stock faces risks from high leverage and potential dividend sustainability issues.

Positive Factors

Earnings Performance

Normalized FFO per share beat the Street expectations, showing stronger performance in earnings.

Leadership Changes

Scott is expected to bolster HR's leadership team.

Negative Factors

Dividend Concerns

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

Financial Strain

The dividend payout ratio remains high at 111%, indicating financial strain.

Healthcare Realty Trust Business Overview & Revenue Model

Company Description

Healthcare Realty Trust (HR) is a self-managed real estate investment trust (REIT) that focuses on owning, managing, acquiring, and developing outpatient medical facilities across the United States. The company's portfolio is primarily composed of medical office buildings and healthcare-related facilities that are strategically located near hospital campuses or within key healthcare hubs. Healthcare Realty Trust aims to support healthcare providers by offering high-quality real estate solutions that enhance patient care and operational efficiency.

How the Company Makes Money

Healthcare Realty Trust makes money primarily through leasing its properties to healthcare providers, including hospitals, physician groups, and other medical service entities. The company's revenue model is centered around collecting rental income from these long-term lease agreements, which often include annual rent escalations. Additionally, HR may earn revenue through property management fees for services provided to tenants. Strategic partnerships and acquisitions of properties in high-demand markets also contribute to the company's earnings, allowing it to expand its portfolio and increase rental income potential. The trust's focus on outpatient facilities aligns with trends towards outpatient care, ensuring steady demand for its properties.

Healthcare Realty Trust Financial Statement Overview

Summary

Healthcare Realty Trust shows mixed financial performance. Strong cash flow management and cost control are evident from positive free cash flow and high EBITDA margins. However, the company is struggling with profitability due to high operational expenses, leading to net losses. The balance sheet has improved leverage, but negative ROE indicates profitability concerns.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.25B	1.34B	932.64M	534.82M	499.63M
	Gross Profit
772.59M	112.62M	588.60M	322.54M	303.12M
	EBIT
36.60M	54.22M	77.84M	84.88M	79.37M
	EBITDA
711.56M	780.51M	555.62M	287.60M	274.18M
	Net Income Common Stockholders
-654.49M	-278.26M	-106.00M	14.32M	19.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
68.92M	25.70M	60.96M	13.18M	15.30M
	Total Assets
10.65B	12.64B	13.85B	4.26B	3.81B
	Total Debt
4.96B	5.30B	5.70B	1.92B	1.71B
	Net Debt
4.89B	5.27B	5.64B	1.91B	1.70B
	Total Liabilities
5.35B	5.71B	6.17B	2.07B	1.86B
	Stockholders Equity
5.23B	6.82B	7.57B	2.19B	1.95B
Cash Flow		Free Cash Flow
252.64M	268.79M	109.20M	131.94M	376.13M
	Operating Cash Flow
501.62M	499.82M	272.75M	232.63M	470.09M
	Investing Cash Flow
900.92M	349.14M	1.63B	-562.47M	-555.17M
	Financing Cash Flow
-1.36B	-884.22M	-1.86B	327.72M	99.72M

Healthcare Realty Trust Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 15.21 is below the 20-day moving average (MA) of 15.60, below the 50-day MA of 16.23, and below the 200-day MA of 16.75, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 45.91 is Neutral, 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	$5.46B	36.19	5.76%	4.14%	36.06%	61.55%
NHI	77 Outperform	$3.52B	24.11	10.53%	4.78%	4.88%	0.41%
AHR	72 Outperform	$5.23B	―	-2.14%	3.14%	11.17%	―
SBRA	63 Neutral	$4.19B	32.82	4.57%	6.81%	7.22%	809.92%
Sector *	60 Neutral	$2.78B	11.39	0.16%	8531.54%	5.92%	-14.67%
HR	49 Neutral	$5.58B	―	-10.95%	7.80%	-5.62%	-140.10%
MPW	47 Neutral	$3.18B	―	-38.69%	7.59%	14.19%	-331.18%

Healthcare Realty Trust Corporate Events

Healthcare Realty Trust Appoints New President & CEO

Healthcare Realty Trust reported a net loss of $44.9 million for the first quarter of 2025, with a normalized FFO per share of $0.39. The company declared a quarterly dividend of $0.31 per share and announced leadership changes with Peter A. Scott appointed as President & CEO. The company also highlighted a slight increase in same-store occupancy and tenant retention, alongside significant leasing activity and asset sale transactions.

Spark’s Take on HR Stock

According to Spark, TipRanks’ AI Analyst, HR is a Neutral.

Healthcare Realty Trust’s overall stock score reflects a blend of strengths and challenges. Strong cash flow generation and strategic improvements are notable positives, while significant profitability issues and valuation challenges weigh on the score. The stock’s technical indicators suggest bearish momentum, and the high dividend yield is appealing yet potentially unsustainable without improved profitability.

To see Spark’s full report on HR stock, click here.

Healthcare Realty Trust Appoints New CEO Peter A. Scott

Healthcare Realty Trust has appointed Peter A. Scott as its new President and CEO, effective April 15, 2025, following a rigorous search process. Scott, who previously served as CFO of Healthpeak Properties, brings extensive experience in healthcare real estate and investment banking. His appointment is expected to bolster the company’s growth and operational strategies, leveraging his expertise in strategic mergers and financial restructuring. Concurrently, Constance B. Moore will step down as Interim President and CEO but will remain on the Board, ensuring a smooth transition.

Spark’s Take on HR Stock

According to Spark, TipRanks’ AI Analyst, (HR) is a Neutral.

Healthcare Realty Trust’s overall stock score reflects a mix of strengths and challenges. The company shows strong cash flow generation and technical momentum, but faces significant profitability issues and valuation challenges. Positive leasing performance and strategic improvements are encouraging, yet bankruptcy-related rent collection issues and the need for deleveraging present risks. The high dividend yield is attractive but may be unsustainable without profitability improvement.

To see Spark’s full report on (HR) stock, click here.

Healthcare Realty Trust Updates on Rent Collection Challenges

On February 28, 2025, Healthcare Realty Trust announced its participation in Citi’s 2025 Global Property CEO Conference scheduled for March 3-4, 2025, and released an updated investor presentation. Additionally, the company reported partial rent collection from Prospect Medical, which filed for Chapter 11 bankruptcy in January 2025. Healthcare Realty collected $0.4 million in rent for January and February 2025, but there is uncertainty regarding the recovery of additional unpaid rent or the ability to relet the space.

Healthcare Realty Trust Reports Q4 Loss, Leadership Change

Healthcare Realty Trust reported a net loss of $106.8 million for the fourth quarter ending December 31, 2024, and declared a quarterly dividend of $0.31 per share. Despite the loss, the company achieved a normalized FFO per share of $0.40, at the high end of its guidance range, and experienced growth in leasing activities with a record 686,000 square feet of new leases. Furthermore, the company undertook significant capital allocation efforts, closing $522 million in joint ventures and asset sales, and reducing its leverage by repaying a $350 million term loan. Leadership changes were also announced, with Connie Moore appointed as Interim President & CEO, and a search is underway for a permanent leader.