Healthcare Realty Trust: Yield Looks Tempting, But Wait For Execution

  • Healthcare Realty Trust offers a defensive yield of 7-8% due to price correction, but valuation reflects ongoing rate pressures and merger impacts. Normalized FFO is stabilizing post-merger, but execution on leasing, asset sales, and debt reduction is critical for future re-rating. Dividend coverage is tight, with FAD at 93%, making payouts vulnerable to macro or operational setbacks until asset sales progress.