Healthcare Realty: Turnaround Is Working, Stock Is Still Cheap

Healthcare Realty Trust remains a compelling value and income play after a successful strategic reset and portfolio streamlining. HR delivered strong Q2 results with 5.1% same-store NOI growth, 93% occupancy, and high tenant retention, supporting robust fundamentals. Redevelopment projects, the KKR joint venture, and disciplined capital recycling underpin future growth and attractive investment spreads. At a forward P/FFO of 12.85x and a well-covered 4.6% yield, HR trades at a discount, justifying a continued 'Buy' rating.