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HR: Share Repurchases Will Support Future Returns Despite Softer Earnings Outlook

HR: Modest Margin Gains And Earnings Outlook Will Guide Future Value

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HR
AnalystConsensusTarget
Not Invested
Published 20 Mar 2025

Update shared on 15 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-0.6%
7D
0.9%

Analysts have modestly raised their price target on Healthcare Realty Trust by $0.00 to reflect a slightly lower discount rate and a higher anticipated future earnings multiple, partly offset by softer expectations for revenue growth and profit margins.

What's in the News

  • The Board of Directors authorized a new share repurchase plan on October 28, 2025, signaling continued commitment to returning capital to shareholders (Key Developments).
  • The company announced a share repurchase program allowing buybacks of up to $500 million of outstanding shares, valid through October 27, 2026 (Key Developments).
  • As of the tranche ending September 30, 2025, the company had repurchased 3,679,162 shares, or about 1.03% of outstanding shares, for $63.04 million under the existing buyback program (Key Developments).
  • Management lowered 2025 earnings guidance and now projects a loss per share of $0.86 to $0.81, compared with the prior range of a $0.78 to $0.73 loss (Key Developments).

Valuation Changes

  • Fair Value: Unchanged at $19.50 per share, indicating no revision to the intrinsic value estimate.
  • Discount Rate: Decreased slightly from 8.18% to 8.16%, which modestly increases the present value of expected cash flows.
  • Revenue Growth: The forecast has weakened slightly, with the long term growth rate moving from approximately negative 0.62% to negative 0.66%.
  • Net Profit Margin: The projected margin has eased from about 23.25% to 22.39%, reflecting slightly softer profitability expectations.
  • Future P/E: The target future valuation multiple has risen modestly from roughly 31.8x to 33.0x, implying a somewhat higher earnings multiple assumption.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.