HR Stock Forecast & Price Target

Healthcare Realty Trust Inc. is strategically targeting $50 million of incremental Net Operating Income (NOI) from its lease-up portfolio, which could provide significant growth opportunities for shareholders. The company is focusing on optimizing its core portfolio and enhancing lease-up performance to deliver attractive Funds From Operations (FFO) growth while strengthening tenant relationships and ensuring acceptable risk-adjusted returns on external investments. With the Medical Office Building sector poised for over 3% organic growth, bolstered by health systems expanding outpatient services, Healthcare Realty Trust is well-positioned to leverage these trends to achieve mid-single digit FFO growth rates.

Healthcare Realty Trust Inc. has experienced a significant 6% decrease in its IFRS NAV per unit, compounded by risks such as ongoing elevated capital expenditures that could threaten its dividend and the potential failure of pending asset sales, which would impact its share repurchase capabilities. The company faces challenges from rising interest rates that may adversely affect valuations of medical office buildings (MOB) and the likelihood that new investments may yield returns below initial expectations, further compounded by disappointing rent figures due to increased concessions. Forward-looking financial metrics, including lower estimates for funds from operations per unit, indicate a projected compound annual growth rate decline of 4%-8% for 2025-2027, raising concerns about the company’s growth trajectory and financial health.