HR Stock Forecast & Price Target

Healthcare Realty Trust Inc. demonstrated a solid financial performance with a year-over-year same-store net operating income (SSNOI) growth of 3.1%, reflecting a positive trend in tenant retention at 81.6%, up from the previous quarter's 80.5%. The company’s strategic focus on long-term leases with corresponding mortgages has historically facilitated attractive risk-adjusted spreads, further bolstering its financial stability. Additionally, the execution of approximately 690,000 square feet of new leases in the fourth quarter, surpassing the trailing twelve months average, signals strong demand for outpatient facilities integral to healthcare operations, contributing to a positive outlook for future growth.

Healthcare Realty Trust Inc. has experienced a decline in its IFRS NAVPU, dropping 1.5% to $19.64, which reflects a broader trend with a 3% reduction on its Q3/24A NOI miss. Additionally, the company's guidance for FY25 normalized FFOPS at $1.58 fell short of expectations, affected by higher-than-anticipated joint venture contributions and a significant bad debt expense linked to the Prospect Medical bankruptcy. Furthermore, the company reported a year-over-year decline in same-asset cash NOI of 1.5%, largely attributed to decreases in office and residential segments, indicating poor performance across key asset classes.