HR Stock Forecast & Price Target

Healthcare Realty Trust is a differentiated pure-play medical office building REIT with 562 properties spanning 32.8 million SF, 73% of which is on- or adjacent-campus, giving it durable demand tied to hospital ecosystems and large health-system tenants such as HCA, Baylor Scott & White, and CommonSpirit. Its positive outlook is supported by HR 2.0, a targeted capital strategy, and a $392 million development and redevelopment pipeline expected to add about $0.05/share of earnings accretion once stabilized, while same-store cash NOI is expected to grow in the mid-3.0% range in 2027 and 2028. Management’s strengthening health-system relationships, 3%+ organic growth potential in the MOB sector, and improving earnings trajectory from $1.64/share in 2026 to $1.76/share in 2028 underpin confidence in steady, higher-quality growth.

Healthcare Realty Trust is viewed negatively because the operating backdrop remains soft, with same-asset cash NOI falling 3.5% year over year and total occupancy declining 180bp to 91.3%, while the company’s leasing assumptions point to further pressure in 2026E and 2027E. The balance sheet has improved after $1.0B of net proceeds from asset sales paid down debt, but leverage still sits at 7.0x and IFRS NAVPU slipped to $15.96, reflecting a $97M fair value loss. Fundamentally, the outlook is weighed down by weak lease spreads, uncertain stabilization of the lease-up portfolio, and the risk that asset sales at higher cap rates could dilute earnings and limit upside.