Healthcare Realty Trust IncorporatedNYSE: HR

New director enhances real estate investment, financial management, and capital allocation expertise of the Board New director enhances real estate investment, financial management, and capital allocation expertise of the Board

$227 million of proceeds from contributions to KKR JV Repurchased shares totaling over $175 million NASHVILLE, Tenn., June 03, 2024 (GLOBE NEWSWIRE) -- Healthcare Realty Trust Incorporated (NYSE:HR) announced in early May that it had entered into a strategic joint venture with KKR (“KKR JV”) to own and invest in quality medical outpatient buildings.

H&R Real Estate Investment Trust is strategically repositioning its portfolio by offloading retail and office properties and focusing on residential and industrial properties. The big yield is supported by a 50% payout ratio. Office segment valuation is more compelling compared to the popular Canadian office REITs.

Healthcare Realty had a successful first quarter in 2024, with a 2.8% increase in total multi-tenant NOI and FFO per share meeting expectations. The partnership with KKR has provided access to a significant amount of liquidity, with $300 million already utilized and plans for an additional $300 million. However, using the funds for share buybacks may not be the best decision as FAD generation is not enough to cover dividends and there are worries about refinancing and debt maturity.

Look beyond analysts' expectations for Healthcare Realty Trust (HR) and assess projections for key metrics to better understand the company's performance in the first quarter of 2024.

REIT stocks have been negatively impacted by the Federal Reserve raising interest rates and worries about inflation. However, the decreased prices of REITs are now providing better returns, which has caught the attention of investors. NewLake Capital Partners, Healthcare Realty Trust, and Ladder Capital are three REITs with attractive yields that investors may want to explore.

Healthcare Realty Trust Incorporated (NYSE:HR) announced today that it plans to release its first quarter 2024 financial results on the morning of May 7, 2024, before the market opens.

Healthcare Realty is a top player in the medical office building industry, specializing in multi-tenant leases. Its portfolio is strategically positioned near busy campus areas, leading to steady demand. While the company's valuations are appealing, risks like limited FAD generation and high leverage levels make Healthcare Realty too risky of an investment for me.

Healthcare Realty shares have fallen 33% in the past year, underperforming the REIT market. Concerns about the sustainability of the dividend, but may not be as great as feared. The company's valuation is significantly discounted compared to recent transactions and replacement costs.