HR Stock Forecast & Price Target

Healthcare Realty Trust is a strong investment opportunity due to its diversified portfolio, with 36 million square feet of medical office buildings in 20 core markets, and strong credit risk with rent coverage rivaling 10x. While the recent announcement of $1.5B of asset sales may have caused some initial volatility in the stock price, the company's ability to pay off debt and potentially engage in a $200M NCIB shows strong financial stability and potential for future growth. Despite some frustration with communication and process evolution, the stock remains a compelling "Buy" given its undervalued trading price and potential for successful capital recycling in the near future.

Healthcare Realty Trust is making a significant move in its plan to become a Residential/Industrial REIT by selling $1.5B of Retail and Office assets at an 8.8% cap rate, which would impact its Q3/25A FFOPU by 21%. While this helps reduce debt and potentially open up the opportunity for NCIB unit purchases, the company has not yet provided enough detail on the remaining $1.1B of planned asset sales, and there may still be potential tax consequences in 2026. Overall, the outlook remains negative with projected declines in FFOPU and AFFOPU, and a revised AFFO payout ratio of 65%.