HR
Healthcare Realty Trust Incorporated
$20.36
Real Estate Investment Trust
85%
P/FFO × Healthcare REIT Multiple
Mild
·
Conviction
Overvalued
Trading 4.1% above fair value
You pay
$20.36
Bear
$15.21
Fair
$19.56
Bull
$23.91
Bear
$15.21
-25.3%
$0.91 FFO × 16x
Fair
$19.56
-3.9%
$0.91 FFO × 21x
Bull
$23.91
+17.4%
$0.91 FFO × 26x
Key Value Driver
FFO/share ($0.91) × healthcare P/FFO multiple
Implied Market Multiple
22.5x
Summary
Our base-case estimate uses P/FFO × Healthcare REIT Multiple. We then blend that result with the average analyst price target of $20.80 from 30 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $19.56 per share.
Warnings
Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.
Key Risks
- P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
- Interest rate sensitivity: REIT multiples compress when rates rise
- FFO approximation (NI + D&A) may include gains on property sales — verify