CluenexHealthcare Realty Trust HR
Healthcare Realty Trust scores weak on business quality (3.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Healthcare Realty Trust does
Healthcare Realty Trust owns and operates medical office buildings, collecting rent from physicians, hospitals, and healthcare systems. Tenants pay to maintain proximity to major hospital campuses. The company is working to digest leverage while managing assets through a period of declining top-line performance.
- What it does best
The company locks in specialized medical tenants through sticky on-campus locations, generating a 63% gross margin that outperforms DOC's 58%. This asset placement creates high switching costs for doctors embedded near major hospitals.
- The main risk
Interest coverage sits at 0.7x, meaning operating earnings do not fully cover interest payments. Debt obligations of nearly $4.0B leave the balance sheet vulnerable if financing conditions tighten further.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 11.5% with a net loss of $89M, dragging ROE down to -1.9%. The negative net margin shows the business struggles to generate profit after debt service.
On-campus medical real estate creates a physical moat locking in healthcare providers. A gross margin of 63% reflects this pricing power, though a moat score of 4.9 limits overall confidence.
Revenue fell 6.9% to $1.1B, extending a multi-year downward trend from $1.3B in 2023. The revenue growth rate sits in the bottom quartile at the 4th percentile of its sector.
Total debt of $4.0B and interest coverage of 0.7x put heavy pressure on earnings, while free cash flow of $124M provides modest breathing room. The balance sheet is getting softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $401K outside pre-planned sales.
Our sealed record on HR
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Healthcare Realty Trust scores weak on the Cluenex quality check (3.2 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 1 sold $401K outside pre-planned sales.
Oct 29, 2026.
See HR today
- Today's verdict on HR, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Healthcare Realty Trust (HR)”, https://cluenex.com/stocks/hr/, data as of Oct 10, 2026.