📊 HR Key Takeaways
Is HR a Good Investment? Thesis Analysis
Healthcare Realty Trust generates strong operating cash flows (457.1M, 38.7% FCF margin) typical of mature REITs, but massive revenue growth (+4084% YoY, likely from acquisition) has failed to produce profitability, resulting in -246.1M net loss. Elevated leverage (3.9B debt, 1.8x interest coverage) combined with minimal cash reserves (26.2M) creates financial stress that offsets otherwise healthy operational cash generation.
Why Buy HR? Key Strengths
- Exceptional free cash flow generation (456.5M) with 38.7% FCF margin, demonstrating operational cash conversion
- Positive operating income (112.6M) and reasonable 9.5% operating margin despite integration challenges
- Moderate debt-to-equity ratio (0.85x) provides structural balance sheet framework for REIT operations
HR Investment Risks to Consider
- Weak interest coverage ratio (1.8x) leaves minimal cushion for operational volatility or rising rates
- Critical liquidity constraint with only 26.2M cash against 3.9B long-term debt and substantial operating obligations
- Acquisition-driven revenue growth has not translated to profitability (net loss of 246.1M, negative ROE and ROA), indicating integration or valuation challenges
Key Metrics to Watch
- Interest coverage ratio trend - must improve above 2.5x for financial stability
- Path to positive net income and EBITDA-to-interest-expense ratio improvement
- Cash position recovery and debt reduction - current 26.2M is dangerously low relative to obligations
HR Financial Metrics
💡 AI Analyst Insight
The 38.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
HR Profitability Ratios
HR vs Default Sector
How Healthcare Realty Trust Inc compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HR Overvalued or Undervalued?
Based on fundamental analysis, Healthcare Realty Trust Inc shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
HR Balance Sheet & Liquidity
HR 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Healthcare Realty Trust Inc's revenue has grown significantly by 106% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.74 indicates the company is currently unprofitable.
HR Growth Metrics (YoY)
HR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $5.0M | -$57.7M | $-0.17 |
| Q2 2025 | $4.3M | -$143.8M | $-0.39 |
| Q1 2025 | $4.2M | -$44.9M | $-0.13 |
| Q3 2024 | $4.7M | -$67.8M | $-0.18 |
| Q2 2024 | $4.2M | -$82.8M | $-0.22 |
| Q1 2024 | $4.2M | -$87.1M | $-0.23 |
| Q3 2023 | $4.1M | $28.3M | $0.08 |
| Q2 2023 | $2.7M | $6.1M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HR Capital Allocation
HR SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Healthcare Realty Trust Inc (CIK: 0001360604)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HR
What is the AI rating for HR?
Healthcare Realty Trust Inc (HR) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HR's key strengths?
Claude: Exceptional free cash flow generation (456.5M) with 38.7% FCF margin, demonstrating operational cash conversion. Positive operating income (112.6M) and reasonable 9.5% operating margin despite integration challenges.
What are the risks of investing in HR?
Claude: Weak interest coverage ratio (1.8x) leaves minimal cushion for operational volatility or rising rates. Critical liquidity constraint with only 26.2M cash against 3.9B long-term debt and substantial operating obligations.
What is HR's revenue and growth?
Healthcare Realty Trust Inc reported revenue of $1.2B.
Does HR pay dividends?
Healthcare Realty Trust Inc pays dividends, with $386.9M distributed to shareholders in the trailing twelve months.
Where can I find HR SEC filings?
Official SEC filings for Healthcare Realty Trust Inc (CIK: 0001360604) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HR's EPS?
Healthcare Realty Trust Inc has a diluted EPS of $-0.71.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Healthcare Realty Trust Inc has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HR stock overvalued or undervalued?
Valuation metrics for HR: ROE of -5.3% (sector avg: 15%), net margin of -20.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HR stock in 2026?
Our dual AI analysis gives Healthcare Realty Trust Inc a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HR's free cash flow?
Healthcare Realty Trust Inc's operating cash flow is $457.1M, with capital expenditures of $600.0K. FCF margin is 38.7%.
How does HR compare to other Default stocks?
Vs Default sector averages: Net margin -20.8% (avg: 12%), ROE -5.3% (avg: 15%), current ratio N/A (avg: 1.8).