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what it is
Healthcare Realty owns medical office buildings and outpatient facilities, then collects rent and service fees from the people using them.
how it gets paid
Last year Healthcare Realty made $28M in revenue.
why it's growing
Revenue grew 47.3% last year. EDGAR shows revenue up 194% vs. prior year to $20M.
what just happened
Latest Revenue was $20M and EPS was -$0.75, a weird gap versus separate reports of a small profit in the last release.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
30/100 earnings predictability — expect surprises
5.6% dividend yield — cash in your pocket every quarter
0.3% return on capital — nothing to write home about
xvary composite: 42/100 — below average
What they do
Healthcare Realty owns medical office buildings and outpatient facilities, then collects rent and service fees from the people using them.
This is a scale business. Healthcare Realty owns 655 properties across 24 states and 40.3 million square feet, so your local doctor office landlord is often this company. Leasing and management cover 93% of the portfolio, which means the buildings are not just owned by HR, they are operated by HR too, and leaving gets messy.
How they make money
$28M
annual revenue · their business grew +47.3% last year
total revenue
$28M
+47.3%
The products that matter
outpatient real estate ownership
medical office buildings
$28M reported revenue base
this is the business. the snapshot ties the portfolio to a $28M revenue line, which is why the page reads more like a rent-collection story than a growth platform.
core asset base
leases space to healthcare tenants
leasing
5.6% dividend yield
the rent stream has to support a 5.6% dividend yield. you are not shown tenant concentration, lease rollover, or cash flow coverage here, so the yield deserves more scrutiny than the page can fully provide.
income driver
manages and develops properties
property operations
56.0% operating margin
a 56.0% operating margin sounds healthy until you pair it with 0.3% return on capital. that gap is the whole debate: decent property economics, weak capital efficiency.
where the story breaks
Key numbers
56.0%
operating margin
Jargon: operating margin → money left after running the business → so what: the buildings look profitable before financing and accounting noise.
0.3%
return on capital
This is the quiet part. HR earns almost nothing on the money tied up in the business.
5.6%
dividend yield
You are getting paid to wait, but that payout has to coexist with negative EPS.
$13.4B
property base
That is a lot of real estate supporting a company with only about a $6B market cap, which is why execution matters more than storytelling.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 75 / 100
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in HR 3 years ago → it's now worth $10,950.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Latest Revenue was $20M and EPS was -$0.75, a weird gap versus separate reports of a small profit in the last release.
EDGAR shows revenue up 194% vs. prior year to $20M, while Yahoo Finance lists the last earnings result at $0.04 versus a -$0.10 estimate. Jargon: EPS → profit per share → so what: the headline depends on which filing snapshot you use, and that alone is a risk.
$20M
revenue
$0.75
eps
+194%
revenue vs. last year
the number that mattered
The number that mattered was -$0.75 EPS, because it clashes with the -$0.25 full-year consensus view and keeps the valuation argument messy.
-
healthcare realty trust has been active in making dispositions.
-
as part of its comprehensive strategic plan dubbed ’’healthcare realty 2.0,’’ the reit segmented approximately 12% of its assets into a disposition portfolio targeted to achieve $1 billion in asset sales in 2025.
-
to that end, during the third quarter and through october, healthcare realty executed on 15 transactions for an aggregate $404 million, bringing the year-to-date total to $486 million, at a blended 6.5% cap rate.the remaining disposition pipeline of approximately $700 million is almost entirely under binding contract or letter of intent. apart from raising significant cash, completed disposition transactions improve the go-forward noi growth profile.
-
during the recent quarter, healthcare realty achieved cash noi growth of 5.4%, driven by 90 basis points of occupancy increase and tenant retention of 88.6%.
-
the reit had a respectable third quarter.
source: company earnings report, 2026
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What could go wrong
the #1 risk is post-merger execution and reporting quality after the healthcare trust of america combination.
med
the reporting picture is still messy
public-source risk language still points back to the Healthcare Realty Trust and Healthcare Trust of America tie-up. when merger clean-up keeps showing up in the file, you should expect investors to keep demanding a discount for complexity.
with a $6B market cap, a $17.23 share price, and a snapshot revenue line of only $28M, even basic interpretation risk is elevated.
med
the yield story has to outrun the negative earnings line
fy2026 EPS is estimated at -$0.75 while the stock yields 5.6%. REITs are not judged on EPS alone, but a negative figure still raises the burden on cash generation and payout coverage.
if the cash metrics do not support what EPS fails to show, the 5.6% yield stops looking like a feature and starts looking like the risk.
med
0.3% return on capital leaves little room for a re-rating
a 56.0% operating margin looks respectable until you put it next to 0.3% return on capital. the properties may be producing spread, but the capital base is not producing much for shareholders.
low returns make it hard for the stock to trade like anything other than a plain yield vehicle.
med
consensus upside is thin
the published 3–5 year midpoint target is $16, below the current $17.23 price. there is also a $30 upper reference point in the dataset, which tells you the target set is wide and noisy.
when the midpoint sits below the stock, you are relying on execution and income, not on the market handing you a higher multiple.
with fy2026 EPS estimated at -$0.75 and the published midpoint target at $16 versus a $17.23 stock price, the room for disappointment looks larger than the room for easy upside.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
dividend support test
5.6% yield with a fy2026 EPS estimate of -$0.75. if you own HR for income, this is the tension at the center of the story.
trend
institutional flow
184 buyers versus 189 sellers in 3q2025 made it three consecutive quarters of net selling. small gap, persistent direction.
cal
estimate cleanup
the jump from $28M reported revenue to a $1B fy2028 estimate needs a better bridge. the next data refresh matters more than another bland rating note.
risk
return on capital
0.3% return on capital is too low to wave away. if that stays stuck, the stock stays in the income bucket and little else.
Analyst rankings
earnings predictability
30 / 100
in human-speak, analysts do not trust this earnings line to stay smooth.
risk rank
3
safer than roughly 50% of stocks. not a bunker, not a blow-up.
price stability
75 / 100
the price chart looks steadier than the business picture. yield stocks do that when the payout becomes the main attraction.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 184 buyers vs. 189 sellers in 3q2025. total institutional holdings: 0.4B shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$11
$20
$17
current price
$16
target midpoint · 7% from current · 3-5yr high: $30 (+75% · 19% ann'l return)
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