HR Stock Forecast & Price Target

Healthcare Realty Trust is appealing because it is executing on HR 2.0 by strengthening health system relationships, driving targeted investments, and improving portfolio quality while still preserving balance sheet flexibility. The company’s outlook is supported by estimated Reported FFO of $1.64/share in 2026, $1.69/share in 2027, and $1.76/share in 2028, alongside same-store cash NOI growth in the mid-3.0% range and about $0.05/share of accretion from a $392 million development and redevelopment pipeline once stabilized. Its healthy 5.6x net debt to EBITDA, $75 million of annual cash retention, and NAV estimates of $21.42/share in-place and $24.66/share by YE27 reinforce a defensive, value-oriented case with improving earnings momentum.

Healthcare Realty Trust is facing a fundamentally weak setup because same-asset cash NOI fell 3.5% y/y, total occupancy dropped to 91.3%, and several property types posted declining cash flow, including office at -7.5% and industrial at -5.2%. Its asset-recycling and strategic initiatives also appear uncertain, as management’s $300 million lease-up investment, $1.2 billion asset-sale plan, and broader culture reset may not stabilize operations quickly enough to offset decelerating leasing and lower occupancy. The valuation backdrop is still unattractive, with the takeout implying a 19% discount to NAV and relying on 1x-1.5x GO REIT multiple expansion, which suggests limited margin of safety if market conditions or healthcare tenant demand soften.