KeyBanc Downgrades Healthcare Realty Trust (HR) to Hold

KeyBanc downgraded Healthcare Realty Trust (NYSE: HR) from Buy to Hold and removed its price target.

Analyst Karin A. Ford said, "We are downgrading the shares of HR to HOLD from BUY because the stock, which is up 27% in 2014 and is outperforming the RMZ by 215 bps, has now closed the gap vs. our estimate of NAV. While we continue to like HR’s shorter lease duration and its core growth opportunities in its multi-tenant medical office portfolio, we suspect that improving market rent growth, rent spreads and SSNOI growth will be slow to materialize in 2015. Additionally, we expect HR’s external growth prospects to be challenging in 2015, as competition for acquisitions remains intense and new development mandates have not yet been signed. In that context, valuation for HR looks fair at a 6.1% implied cap rate, though we acknowledge that we could be leaving value on the table since HR is a perennial take-out candidate for one of the larger REITs."

For an analyst ratings summary and ratings history on Healthcare Realty Trust click here. For more ratings news on Healthcare Realty Trust click here.

Shares of Healthcare Realty Trust closed at $27.08 yesterday.

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