# Healthcare Realty Trust (HR.US)

Canonical: https://gigainvestors.com/s/HR

Analysis as of: 2026-10-16T07:29:07.733Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $17.36 per share; close as of 2026-10-15.

Estimated value: low $7.09 per share, central $8.07 per share, high $9.37 per share. Buy at or below the central value $8.07 per share. Valuation as of 2026-10-16T07:29:07.733Z; scenarios are not confidence intervals.

Expected annual return: 6.2% at the stated quote. About 6.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 4

- Operating margin variation: 0.61×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.23×

- FY2018: 0.23×

- FY2019: 0.07×

- FY2020: 0.09×

- FY2021: 0.16×

- FY2022: 0.08×

- FY2023: 0.04×

- FY2024: 0.03×

- FY2025: 0.08×

- LTM to Jun 2026: 0.23×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 16.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 1.1%

- ROIC, second-lowest year: 0.3%

- Typical minus recent gross margin: 16.7 pp

- Typical gross margin (annual median): -27.1%

- Recent gross margin (lower of latest and 3-year median): -43.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 16.4%

- ROIC including acquisitions, ten-year median: 3.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 2.3%

- FY2017: 2.8%

- FY2018: 3.1%

- FY2019: 0.9%

- FY2020: 1.2%

- FY2021: 1.3%

- FY2022: 0.4%

- FY2023: 0.3%

- FY2024: 0.3%

- FY2025: 0.9%

### economics: pass

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $601M

- Net income, five-year total: -$1.1B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.9 pp

- Working capital / revenue, change between three-year averages: 8.9 pp

- Working capital / revenue, final three-year average: 6.6%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $172M

- FY2022: $355M

- FY2023: $267M

- FY2024: -$181M

- FY2025: -$12M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 2.8% vs 0.3%

- Per-share earnings: 0.46 to -0.73 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 13.4%

- Ordinary dilution, 5-year annual growth: 21.2%

- Market cap gain: $2.4B

- Cumulative retained earnings: $1.4B

- Diluted shares, 10-year annual growth: 13.4%

- Diluted shares, 5-year annual growth: 21.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$1.19

- Per-share value, starting three-year median: $0.46

- Per-share value, ending three-year median: -$0.73

- Buybacks concentrated in cheaper years (correlation): -0.03

- Average buyback yield: 0.9%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $659M

- Cumulative net income, 10 years: -$661M

- ROIC, first three-year median: 2.8%

- ROIC, last three-year median: 0.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.46

- FY2017: $0.54

- FY2018: $1.73

- FY2019: $0.24

- FY2020: $0.39

- FY2021: $0.47

- FY2022: $0.11

- FY2023: -$0.73

- FY2024: -$1.86

- FY2025: -$0.70

### accounting: pass

- Sloan accruals: -7.6%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 4.9%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.3%

- FY2017: -3.6%

- FY2018: 0.2%

- FY2019: -5.1%

- FY2020: -11.0%

- FY2021: -3.9%

- FY2022: -1.7%

- FY2023: -6.2%

- FY2024: -10.9%

- FY2025: -7.6%

## Holders

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 47% since Oct 2021 · sales -3%

Story as of 2026-10-16T09:58:54.162Z; price observation 2026-10-15.

Price needs cash profits to grow 10.5% a year for ten years

- 2026-04-30: Healthcare Realty Reports First Quarter 2026 Results and Increases Full Year 2026 Guidance ([finance.yahoo.com](https://finance.yahoo.com/sectors/healthcare/articles/healthcare-realty-reports-first-quarter-200500448.html))

- 2026-07-30: Healthcare Realty Reports Second Quarter 2026 Results and Further Increases Full Year 2026 Guidance ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/healthcare-realty-reports-second-quarter-200100007.html))

### Sales · FY2025–2026

sales -3%; source https://www.sec.gov/Archives/edgar/data/899749/000089974922000019/hr-20211231.htm; observed 2022-02-22.

- FY2017: $613M 

- FY2018: $695M 

- FY2019: $694M 

- FY2020: $735M 

- FY2021: $535M 

- FY2022: $933M 

- FY2023: $1.3B 

- FY2024: $1.3B 

- FY2025: $1.2B 

- FY2026: $1.1B 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are USD 1.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); FY2025: revenue 1180546000; grossProfit -396461000; margin = grossProfit / revenue.

### Why customers stay

It earns 1.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); FY2023: grossProfit / revenue = -46%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); FY2024: grossProfit / revenue = -43.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); FY2025: grossProfit / revenue = -33.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); 10-year return on capital observations [[2016,0.02291981665101622],[2017,0.02766454425539515],[2018,0.031389857031512716],[2019,0.00899069116419705],[2020,0.012440166633181938],[2021,0.01332387985356118],[2022,0.003885626941270136],[2023,0.003293819019492402],[2024,0.0030298796020828034],[2025,0.00858294320704182]]; median 0.010715428898689493. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); FY2016: growth capex 0; upkeep 71433000; owner earnings 109559000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); FY2017: growth capex 0; upkeep 80613000; owner earnings 129654000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); FY2018: growth capex 0; upkeep 70807000; owner earnings 309857000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); FY2019: growth capex 0; upkeep 64670000; owner earnings 146356000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); FY2020: growth capex 0; upkeep 93963000; owner earnings 153471000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/899749/000089974922000019/hr-20211231.htm (filed 2022-02-22); FY2021: growth capex 0; upkeep 100689000; owner earnings 172476999. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); FY2022: growth capex 0; upkeep 163544000; owner earnings 355130000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); FY2023: growth capex 0; upkeep 231026000; owner earnings 266603000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); Dividend observations: [[2016,131759000],[2017,142327000],[2018,150266000],[2019,256117000],[2020,275816000],[2021,175456000],[2022,283713000],[2023,472242000],[2024,457853000],[2025,386919000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); FY2025: cash repurchases 4006999 USD.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HR.US SharesStats.PercentInsiders = 0.59 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 10.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-22); Ten-year compound average after fade. Initial solved rate 0.13867489072387562. Price 17.36; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.0465026327213147 → FY2025 -0.0350176545198999. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $31.89 per share

- 2016-11: $29.38 per share

- 2016-12: $30.32 per share

- 2017-01: $30.21 per share

- 2017-02: $31.96 per share

- 2017-03: $32.50 per share

- 2017-04: $32.80 per share

- 2017-05: $33.26 per share

- 2017-06: $34.15 per share

- 2017-07: $33.30 per share

- 2017-08: $33.28 per share

- 2017-09: $32.34 per share

- 2017-10: $32.24 per share

- 2017-11: $32.77 per share

- 2017-12: $32.12 per share

- 2018-01: $29.87 per share

- 2018-02: $26.55 per share

- 2018-03: $27.71 per share

- 2018-04: $27.83 per share

- 2018-05: $27.24 per share

- 2018-06: $29.08 per share

- 2018-07: $29.71 per share

- 2018-08: $30.96 per share

- 2018-09: $29.26 per share

- 2018-10: $27.86 per share

- 2018-11: $31.00 per share

- 2018-12: $28.44 per share

- 2019-01: $32.29 per share

- 2019-02: $31.65 per share

- 2019-03: $32.11 per share

- 2019-04: $30.88 per share

- 2019-05: $32.24 per share

- 2019-06: $31.32 per share

- 2019-07: $31.98 per share

- 2019-08: $33.23 per share

- 2019-09: $33.50 per share

- 2019-10: $34.77 per share

- 2019-11: $33.19 per share

- 2019-12: $33.37 per share

- 2020-01: $36.06 per share

- 2020-02: $34.30 per share

- 2020-03: $27.93 per share

- 2020-04: $29.39 per share

- 2020-05: $30.70 per share

- 2020-06: $29.29 per share

- 2020-07: $29.30 per share

- 2020-08: $28.85 per share

- 2020-09: $30.12 per share

- 2020-10: $27.80 per share

- 2020-11: $29.50 per share

- 2020-12: $29.60 per share

- 2021-01: $30.01 per share

- 2021-02: $28.86 per share

- 2021-03: $30.32 per share

- 2021-04: $32.16 per share

- 2021-05: $30.34 per share

- 2021-06: $30.20 per share

- 2021-07: $31.88 per share

- 2021-08: $30.03 per share

- 2021-09: $29.78 per share

- 2021-10: $33.06 per share

- 2021-11: $31.32 per share

- 2021-12: $31.64 per share

- 2022-01: $31.02 per share

- 2022-02: $26.08 per share

- 2022-03: $27.48 per share

- 2022-04: $27.08 per share

- 2022-05: $29.07 per share

- 2022-06: $27.20 per share

- 2022-07: $26.25 per share

- 2022-08: $24.32 per share

- 2022-09: $20.85 per share

- 2022-10: $20.33 per share

- 2022-11: $20.53 per share

- 2022-12: $19.27 per share

- 2023-01: $21.53 per share

- 2023-02: $19.50 per share

- 2023-03: $19.33 per share

- 2023-04: $19.78 per share

- 2023-05: $18.61 per share

- 2023-06: $18.86 per share

- 2023-07: $19.53 per share

- 2023-08: $17.52 per share

- 2023-09: $15.27 per share

- 2023-10: $14.35 per share

- 2023-11: $15.27 per share

- 2023-12: $17.23 per share

- 2024-01: $16.11 per share

- 2024-02: $13.78 per share

- 2024-03: $14.15 per share

- 2024-04: $14.23 per share

- 2024-05: $16.23 per share

- 2024-06: $16.48 per share

- 2024-07: $17.69 per share

- 2024-08: $17.80 per share

- 2024-09: $18.15 per share

- 2024-10: $17.18 per share

- 2024-11: $18.32 per share

- 2024-12: $16.95 per share

- 2025-01: $16.75 per share

- 2025-02: $17.13 per share

- 2025-03: $16.90 per share

- 2025-04: $15.53 per share

- 2025-05: $14.50 per share

- 2025-06: $15.86 per share

- 2025-07: $15.36 per share

- 2025-08: $17.38 per share

- 2025-09: $18.03 per share

- 2025-10: $17.72 per share

- 2025-11: $18.23 per share

- 2025-12: $16.95 per share

- 2026-01: $16.79 per share

- 2026-02: $18.45 per share

- 2026-03: $16.99 per share

- 2026-04: $18.70 per share

- 2026-05: $19.92 per share

- 2026-06: $20.17 per share

- 2026-07: $21.01 per share

- 2026-08: $19.04 per share

- 2026-09: $17.74 per share

- 2026-10: $17.36 per share

## Annual estimated value (USD per share)

- FY2016: low $10.95 per share, central $12.46 per share, high $14.47 per share

- FY2017: low $16.80 per share, central $24.01 per share, high $28.20 per share

- FY2018: low $15.07 per share, central $17.15 per share, high $19.91 per share

- FY2019: low $14.08 per share, central $16.03 per share, high $18.61 per share

- FY2020: low $12.68 per share, central $14.43 per share, high $16.76 per share

- FY2021: low $8.68 per share, central $9.87 per share, high $11.46 per share

- FY2022: low $8.75 per share, central $9.94 per share, high $11.53 per share

- FY2023: low $8.18 per share, central $9.30 per share, high $10.80 per share

- FY2024: low $8.36 per share, central $9.49 per share, high $11.00 per share

- FY2025: low $7.32 per share, central $8.33 per share, high $9.67 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/899749/000089974922000019/hr-20211231.htm); period 2021-12-31, filed 2022-02-22.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.