NYSE:HR

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.


Snowflake Analysis

Second-rate dividend payer and slightly overvalued.


Similar Companies

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: HR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

19.1%

HR

15.1%

US REITs

9.4%

US Market


1 Year Return

-4.3%

HR

-14.1%

US REITs

-6.8%

US Market

Return vs Industry: HR exceeded the US REITs industry which returned -20.3% over the past year.

Return vs Market: HR matched the US Market which returned -10% over the past year.


Shareholder returns

HRIndustryMarket
7 Day19.1%15.1%9.4%
30 Day-16.5%-12.2%-3.9%
90 Day-8.0%-18.4%-16.5%
1 Year-0.8%-4.3%-10.5%-14.1%-4.8%-6.8%
3 Year3.0%-8.3%6.0%-7.3%23.4%15.2%
5 Year41.5%15.6%26.3%0.5%41.3%25.7%

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

Valuation

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

24.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HR ($28.91) is trading below our estimate of fair value ($40.49)

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


Price To Earnings Ratio

PE vs Industry: HR is poor value based on its PE Ratio (99.7x) compared to the REITs industry average (23.6x).

PE vs Market: HR is poor value based on its PE Ratio (99.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: HR is poor value based on its PEG Ratio (1109.4x)


Price to Book Ratio

PB vs Industry: HR is overvalued based on its PB Ratio (2x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is Healthcare Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

0.09%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HR's forecast earnings growth (0.09% per year) is below the savings rate (1.7%).

Earnings vs Market: HR's earnings (0.09% per year) are forecast to grow slower than the US market (13.3% per year).

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

Revenue vs Market: HR's revenue (6.2% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: HR's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HR's Return on Equity is forecast to be low in 3 years time (3.6%).


Next Steps

Past Performance

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

-6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HR has a large one-off gain of $16.6M impacting its December 31 2019 financial results.

Growing Profit Margin: HR's current net profit margins (7.9%) are lower than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: HR's earnings have declined by -6.7% per year over the past 5 years.

Accelerating Growth: HR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HR had negative earnings growth (-45%) over the past year, making it difficult to compare to the REITs industry average (4.3%).


Return on Equity

High ROE: HR's Return on Equity (2.1%) is considered low.


Next Steps

Financial Health

How is Healthcare Realty Trust's financial position?


Financial Position Analysis

Short Term Liabilities: HR's short term assets ($133.1M) exceed its short term liabilities ($111.1M).

Long Term Liabilities: HR's short term assets ($133.1M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: HR's debt to equity ratio (74.7%) is considered high.

Reducing Debt: HR's debt to equity ratio has reduced from 115% to 74.7% over the past 5 years.

Debt Coverage: HR's debt is not well covered by operating cash flow (15%).

Interest Coverage: HR's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

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

3.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HR's dividend (4.15%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: HR's dividend (4.15%) is low compared to the top 25% of dividend payers in the US market (5.46%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.4%), HR's payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Todd Meredith (44yo)

3.33s

Tenure

US$3,409,582

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 ($USD3.41M) is below average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Todd Meredith
President3.33yrsUS$3.41m0.35% $14.3m
James Douglas
Executive VP & CFO4.08yrsUS$2.03m0.13% $5.2m
Robert Hull
Executive Vice President of Investments3.25yrsUS$2.15m0.10% $4.1m
John Bryant
Executive VP & General Counsel16.42yrsUS$2.03m0.13% $5.4m
Amanda Callaway
Senior VP & Chief Accounting Officerno datano data0.044% $1.8m
Billy Rainey
Associate Vice President of Technology Services3.25yrsno datano data
Carla Baca
Associate Vice President of Investor Relationsno datano datano data
Tim Staggs
Vice President of Internal Audit & Complianceno datano datano data
Bethany Mancini
Associate Vice President of Corporate Communicationsno datano datano data
Revell Michael
Vice President of Marketingno datano datano data

3.3yrs

Average Tenure

44yo

Average Age

Experienced Management: HR's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Todd Meredith
President3.33yrsUS$3.41m0.35% $14.3m
John Singleton
Independent Chairman & Lead Director0.58yrUS$168.49k0.025% $1.0m
Bruce Sullivan
Independent Director16.25yrsUS$194.49k0.023% $935.1k
Nancy Agee
Independent Director4.17yrsUS$184.96k0.015% $630.4k
Christann Vasquez
Independent Director4.42yrsUS$186.99k0.0095% $392.6k
Peter Lyle
Independent Director4.17yrsUS$179.99k0.0067% $276.2k
Edward Braman
Independent Director1.92yrsUS$194.49k0.0051% $210.1k
John Abbott
Independent Director0.92yrUS$141.49k0.0024% $99.1k

3.5yrs

Average Tenure

63yo

Average Age

Experienced Board: HR's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Healthcare Realty Trust Incorporated
  • Ticker: HR
  • Exchange: NYSE
  • Founded: 1992
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Market Cap: US$4.129b
  • Shares outstanding: 134.92m
  • 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 December 31, 2019, the Company owned 204 real estate properties in 25 states totaling 15.4 million square feet and was valued at approximately $5.9 billion. The Company provided leasing and property management services to 11.4 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 Analysis2020/04/09 03:02
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.