DB:HR6

Stock Analysis Report

Healthcare Realty Trust

Executive Summary

Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States.

Rewards

Trading at 27.5% below its fair value

Earnings are forecast to grow 10.75% per year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Second-rate dividend payer and slightly overvalued.


Similar Companies

Universal Health Services

NYSE:UHS

Share Price & News

How has Healthcare Realty Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HR6 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

HR6

1.3%

DE REITs

0.7%

DE Market


1 Year Return

16.0%

HR6

34.5%

DE REITs

15.6%

DE Market

Return vs Industry: HR6 underperformed the German REITs industry which returned 32.9% over the past year.

Return vs Market: HR6 exceeded the German Market which returned 14.8% over the past year.


Shareholder returns

HR6IndustryMarket
7 Day2.7%1.3%0.7%
30 Day3.4%5.0%1.7%
90 Day0.7%5.6%6.3%
1 Year20.5%16.0%39.1%34.5%19.2%15.6%
3 Year24.4%10.5%40.4%20.5%18.3%7.9%
5 Year42.0%15.6%43.9%13.0%26.8%9.4%

Price Volatility Vs. Market

How volatile is Healthcare Realty Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Healthcare Realty Trust undervalued compared to its fair value and its price relative to the market?

25.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HR6 (€30) is trading below our estimate of fair value (€41.36)

Significantly Below Fair Value: HR6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HR6 is poor value based on its PE Ratio (162.3x) compared to the REITs industry average (8.9x).

PE vs Market: HR6 is poor value based on its PE Ratio (162.3x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: HR6 is poor value based on its PEG Ratio (15.1x)


Price to Book Ratio

PB vs Industry: HR6 is overvalued based on its PB Ratio (2.5x) compared to the DE REITs industry average (1.6x).


Next Steps

Future Growth

How is Healthcare Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HR6's forecast earnings growth (10.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: HR6's earnings (10.7% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: HR6's earnings are forecast to grow, but not significantly.

Revenue vs Market: HR6's revenue (8.2% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: HR6's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HR6's Return on Equity is forecast to be low in 3 years time (2.2%).


Next Steps

Past Performance

How has Healthcare Realty Trust performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HR6 has a large one-off gain of $9.4M impacting its September 30 2019 financial results.

Growing Profit Margin: HR6's current net profit margins (5.7%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: HR6's earnings have declined by -3.3% per year over the past 5 years.

Accelerating Growth: HR6's earnings growth over the past year (86.1%) exceeds its 5-year average (-3.3% per year).

Earnings vs Industry: HR6 earnings growth over the past year (86.1%) underperformed the REITs industry 96.7%.


Return on Equity

High ROE: HR6's Return on Equity (1.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Healthcare Realty Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HR6 has a high level of physical assets or inventory.

Debt Coverage by Assets: HR6's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: HR6's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HR6 has a sufficient allowance for bad loans.

Low Risk Liabilities: HR6 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HR6 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HR6 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HR6 has an appropriate level of bad loans.


Next Steps

Dividend

What is Healthcare Realty Trust's current dividend yield, its reliability and sustainability?

3.47%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.5%industryaverage2.9%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: HR6's dividend (3.56%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: HR6's dividend (3.54%) is low compared to the top 25% of dividend payers in the German market (3.56%).


Stability and Growth of Payments

Stable Dividend: HR6's dividend payments have been volatile in the past 10 years.

Growing Dividend: HR6's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.2%), HR6's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HR6's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

What is the CEO of Healthcare Realty Trust's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Todd Meredith (44yo)

3.1yrs

Tenure

US$3,082,120

Compensation

Mr. Todd J. Meredith has been the Chief Executive Officer and President at Healthcare Realty Trust Incorporated since December 30, 2016. Previously, Mr. Meredith served as an Executive Vice President of In ...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD3.08M) is above average for companies of similar size in the German market ($USD2.07M).

Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.0yrs

Average Tenure

45.5yo

Average Age

Experienced Management: HR6's management team is considered experienced (3 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

63yo

Average Age

Experienced Board: HR6's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: HR6 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€284,37619 Dec 19
Todd Meredith
EntityIndividual
Role
Chief Executive Officer
President
Shares9,707
Max Price€29.30
Sell€406,79216 Dec 19
Todd Meredith
EntityIndividual
Role
Chief Executive Officer
President
Shares14,000
Max Price€29.17
Sell€48,69511 Dec 19
Robert Hull
EntityIndividual
Role
Chief Investment Officer
Executive Vice President of Investments
Shares1,606
Max Price€30.32
Sell€60,36910 Dec 19
Bruce Sullivan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max Price€30.18
Sell€375,72923 May 19
John Bryant
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares13,079
Max Price€28.73

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Management Team

  • John Bryant (52yo)

    Executive VP & General Counsel

    • Tenure: 16.2yrs
    • Compensation: US$1.84m
  • B. Whitman (50yo)

    Senior VP of Finance & Treasurer

    • Tenure: 1.8yrs
    • Compensation: US$1.55m
  • Revell Michael

    Vice President of Marketing

    • Rob Hull (47yo)

      Executive Vice President of Investments

      • Tenure: 3yrs
      • Compensation: US$1.88m
    • Todd Meredith (44yo)

      President

      • Tenure: 3.1yrs
      • Compensation: US$3.08m
    • Amanda Callaway (40yo)

      Senior VP & Chief Accounting Officer

      • Carla Baca

        Associate Vice President of Investor Relations

        • Kris Douglas (43yo)

          Executive VP & CFO

          • Tenure: 3.8yrs
          • Compensation: US$1.82m
        • Tim Staggs

          Vice President of Internal Audit & Compliance

          • Billy Rainey

            Associate Vice President of Technology Services

            • Tenure: 3yrs

          Board Members

          • John Singleton (70yo)

            Independent Chairman & Lead Director

            • Tenure: 0.3yrs
            • Compensation: US$183.48k
          • Bruce Sullivan (78yo)

            Independent Director

            • Tenure: 16yrs
            • Compensation: US$202.99k
          • Nancy Agee (67yo)

            Independent Director

            • Tenure: 3.9yrs
            • Compensation: US$215.98k
          • Chris Vasquez (58yo)

            Independent Director

            • Tenure: 4.2yrs
            • Compensation: US$185.49k
          • Peter Lyle (54yo)

            Independent Director

            • Tenure: 3.9yrs
            • Compensation: US$176.99k
          • Todd Meredith (44yo)

            President

            • Tenure: 3.1yrs
            • Compensation: US$3.08m
          • Ned Braman (62yo)

            Director

            • Tenure: 1.7yrs
            • Compensation: US$141.49k
          • John Abbott (64yo)

            Director

            • Tenure: 0.7yrs

          Company Information

          Healthcare Realty Trust Incorporated's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Healthcare Realty Trust Incorporated
          • Ticker: HR6
          • Exchange: DB
          • Founded: 1992
          • Industry: Health Care REITs
          • Sector: Real Estate
          • Market Cap: US$4.621b
          • Listing Market Cap: US$4.169b
          • Shares outstanding: 133.74m
          • Website: https://www.healthcarerealty.com

          Number of Employees


          Location

          • Healthcare Realty Trust Incorporated
          • 3310 West End Avenue
          • Fourth Floor
          • Nashville
          • Tennessee
          • 37203
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          HRNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1993
          HR6DB (Deutsche Boerse AG)YesCommon StockDEEURMay 1993

          Biography

          Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of September 30, 2019, the Company owned 204 real estate properties in 26 states totaling 15.4 million square feet and was valued at approximately $5.9 billion. The Company provided leasing and property management services to 11.2 million square feet nationwide. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/20 21:07
          End of Day Share Price2020/01/20 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.