Daily Stock Review: Healthcare Realty Trust

This week, I'm looking for a second stalwart healthcare sector representative for my new Ivy portfolio. 

That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices; medical distribution; medical supplies.

Today I'm reviewing a mid-cap healthcare facilities real estate investment trust, Healthcare Realty Trust Inc. Its trading ticker symbol is HR.

Healthcare Realty Trust Inc is a healthcare facility real estate investment trust. It focuses on owning, leasing, and managing outpatient facilities and other healthcare properties. It generates all of its revenue in the United States. 

From an initial portfolio of 21 healthcare facilities in 1993, Healthcare Realty now owns 201 real estate properties in 27 states totaling 14.8 million square feet and was valued at approximately $5.0 billion. The Company provided leasing and property management services to 11.1 million square feet nationwide,  as of September 30, 2018.

The company is headquartered in Nashville, Tennessee.

I use three key data points to gauge the value of any dividend equity or fund like Healthcare Realty Trust Inc.: 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

HR Price

HR's price per share was $27.41 at Monday's market close. A year ago its price was $31.69 for a price drop of $4.28 per share for the year or a 13.5% annual tumble. 

HR's stock will trade in the range of $24 to $34 next year, HR's recent $27.41 price could recover by $0.59 and grow to $28.00 by late-December, 2019. 

HR Dividends

HR's most recent monthly dividend was $0.30 declared October 30h and paid out, November 30th. 

That $0.30 quarterly stipend equates to an annual amount of $1.20 yielding 4.4% at Friday's closing $27.41 price.

Gains For HR?

Adding the $1.20 annual estimated dividend to my estimated $0.59 annual price upside estimate for Healthcare Realty Trust Inc. totals up to a $1.79 potential gross annual per share gain, which will be reduced by costs to trade the shares.  

For a little under $1,000.00 invested today at the $27.41 recent price, we could buy 36 HR shares. 

A $10 broker fee paid half at purchase and half at sale costs us $0.28 per share.

Subtract that $0.28 brokerage cost from the estimated $1.79 gross annual gain leaves a net gain of $1.51 X 36 shares 

= $54.36

for a 5.5% net gain on a $986.76 investment.

Therefore, Healthcare Realty Trust Inc whose trading ticker symbol is HR, now shows a possible 5.5% net gain including a 4.4% dividend yield. 

Fourteen brokers cover this stock:

Two brokers say "buy" HR

Eleven brokers say "hold" HR shares.

One broker says HR will "underperform" peers.

The fourteen covering brokers are more optimistic for HR's price recovery than I am.

They strike a median price upside at almost $30.00 next year. Which, you will recall is $2.00 higher than my $28 estimated one year target.

Therefore, you can look at Healthcare Realty Trust Inc. and see it has made money, is making money, but could rise to net a 5.5% to 10% net annual gain including that 4.4% estimated dividend yield. It could be more, it could be less. 

The above speculation is based on past year performance. The actual results remain to be seen to determine if Healthcare Realty Trust Inc. is worth your time and money.

Disclaimer: 

This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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