HR Stock Forecast & Price Target

Healthcare Realty Trust Inc. is focused on enhancing its portfolio, aiming for an incremental net operating income (NOI) increase of $50 million from its lease-up assets, which could provide significant growth opportunities for shareholders. The company believes that its improved business profile warrants a higher valuation multiple and emphasizes maximizing performance in both its core and lease-up portfolios. Additionally, the Medical Office Building (MOB) sector is expected to yield more than 3% organic growth in the future, surpassing historical averages, further supporting a positive outlook for the company.

Healthcare Realty Trust's investment outlook features several significant risks that contribute to a negative perspective, including elevated capital expenditure (capex) spending, which may lead to dividend cuts and hinder share repurchase capabilities. Additionally, rising interest rates pose a threat to the valuations of medical office building (MOB) properties, combined with the potential for new investments to yield below expectations and internal growth metrics to decline due to changes in doctor reimbursement rates. Lastly, ongoing challenges in the healthcare market increase credit risk among key tenants, further dampening growth prospects in the near term, expected to remain subdued in the low-single digits.