Healthcare Realty Trust (HR) AI Stock Analysis

• Market Cap: $5.66B
• Dividend Yield: 7.69%
• Average Volume (3M): 4.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: -7.26%
• EPS Growth: 18.45%
• Country: US
• Employees: 550
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Healthcare Facilities
• EPS (TTM): -0.13
• Shares Outstanding: 351,423,460
• 10 Day Avg. Volume: 4,148,551
• 30 Day Avg. Volume: 4,017,557
• PEG Ratio: -0.38
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.02
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 6.86
• Enterprise Value/Gross Profit: 43.39
• Enterprise Value/Ebitda: 11.88
• 1Y Price Target: $16.50
• Price Target Upside: 2.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 59 Neutral
• Price Target: $16.00 ▼(-0.74%Downside)

Healthcare Realty Trust's overall score reflects a balance between strong technical indicators and governance improvements, weighed down by financial performance challenges and leverage concerns. The high dividend yield is attractive, but profitability issues and potential earnings dilution from asset sales pose risks.

Positive Factors

Earnings

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

Leadership

Scott is expected to bolster HR's leadership team.

Operational Performance

Leasing momentum continued with a record 686K SF of new leases signed with solid 81.6% retention.

Negative Factors

Dividend

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

Guidance

2025 guidance was initiated modestly below the Street, impacted by continued asset sales to help de-lever.

Leadership Uncertainty

There is no update on the CEO search process, creating uncertainty in leadership.

Healthcare Realty Trust Business Overview & Revenue Model

Company Description

Healthcare Realty Trust (HR) is a real estate investment trust (REIT) that specializes in owning, managing, and developing properties associated with the healthcare industry across the United States. The company's portfolio includes medical office buildings, outpatient facilities, and other healthcare-related properties, making it one of the prominent players in the healthcare real estate sector. HR focuses on providing high-quality facilities to healthcare providers, ensuring operational efficiency and meeting the unique needs of the healthcare industry.

How the Company Makes Money

Healthcare Realty Trust makes money primarily through leasing its properties to healthcare providers, including hospitals, medical groups, and outpatient service centers. The company generates revenue through rental income from long-term leases, which often include annual rent escalations to adjust for inflation and market conditions. Additionally, HR may engage in property development projects, generating income from property sales or through increased rental income from newly developed properties. The company's earnings are also influenced by strategic partnerships and joint ventures with healthcare providers, which can enhance property value and occupancy rates. Furthermore, HR may engage in selective acquisitions of healthcare properties to expand its portfolio and increase revenue potential.

Healthcare Realty Trust Financial Statement Overview

Summary

Healthcare Realty Trust shows mixed financial performance with strong cash flow management and cost control but struggles with profitability due to high operational expenses. Improved leverage ratios are positive, but consistent net losses remain a concern.

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
EBITDA	711.56M	780.51M	555.62M	287.60M	274.18M
Net Income	-654.49M	-278.26M	-106.00M	14.32M	19.19M
Balance Sheet
Total Assets	10.65B	12.64B	13.85B	4.26B	3.81B
Cash, Cash Equivalents and Short-Term Investments	68.92M	25.70M	60.96M	13.18M	15.30M
Total Debt	4.96B	5.30B	5.70B	1.92B	1.71B
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: Positive
• Last Price: 16.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 16.12 is above the 20-day moving average (MA) of 16.08, above the 50-day MA of 15.29, and above the 200-day MA of 15.98, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 56.61 is Neutral, neither overbought nor oversold. The STOCH value of 56.42 is Neutral, 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	78 Outperform	$5.99B	34.06	7.02%	4.00%	43.27%	80.97%
SBRA	77 Outperform	$4.34B	30.84	5.15%	6.59%	7.81%	179.16%
NHI	75 Outperform	$3.32B	22.56	10.56%	5.06%	7.44%	4.23%
AHR	68 Neutral	$6.03B	―	-1.93%	2.68%	11.30%	―
Sector *	67 Neutral	5.40B	11.09	4.91%	258.79%	3.86%	9.29%
HR	59 Neutral	$5.66B	―	-6.83%	7.69%	-7.26%	18.45%
MPW	48 Neutral	$2.60B	―	-28.86%	7.41%	19.56%	-12.73%

Healthcare Realty Trust Corporate Events

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.

The most recent analyst rating on (HR) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Healthcare Realty Trust stock, see the HR Stock Forecast page.

Healthcare Realty Trust Appoints New Director and CEO

On May 20, 2025, Healthcare Realty Trust‘s Board of Directors appointed Peter A. Scott as a director and increased the board size to 12 members, with plans to reduce it in the future. Mr. Scott, who became the company’s President and CEO on April 15, 2025, will serve on the Capital Allocation Committee. At the annual stockholders’ meeting on May 20, 2025, several directors were elected, and key proposals, including the ratification of BDO USA, P.C. as the independent accounting firm and executive compensation, were approved.

The most recent analyst rating on (HR) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Healthcare Realty Trust stock, see the HR Stock Forecast page.

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.