Resolution Capital Initiates Position in Healthcare Realty Trust After a Year of REIT Pressure

What happened

Resolution Capital Ltd reported a new position in Healthcare Realty Trust (NYSE:HR), adding 6,402,102 shares valued at $115.43 million as of September 30, 2025, according to its November 14, 2025, SEC filing. The real estate investment trust did not appear in the fund’s previous quarter portfolio. The firm reported $5.14 billion in total U.S. equity positions across 38 holdings at quarter-end.

What else to know

This was a new position, now comprising 2.2462% of Resolution Capital Ltd’s 13F reportable assets under management.

Top five holdings after the filing:

• NYSE: WELL: $748,737,384 (14.5701% of AUM)
• NYSE: DLR: $508,115,238 (9.8877% of AUM)
• NASDAQ: EQIX: $470,611,320 (9.1579% of AUM)
• NYSE: VTR: $460,085,634 (8.9531% of AUM)
• NYSE: EXR: $397,939,721 (7.7437% of AUM)

As of November 13, 2025, shares were priced at $18.08, up 9.91% over the past year, underperforming the S&P 500 by 2.48 percentage points

Healthcare Realty Trust reported trailing twelve months revenue of $1,174,487,000 and a dividend yield of 6.07% as of November 14, 2025

Company Overview

Company Snapshot

Healthcare Realty Trust is a leading healthcare-focused REIT specializing in the acquisition, development, and management of outpatient medical properties nationwide. The company's strategy centers on building a high-quality portfolio of income-producing assets that support the delivery of outpatient healthcare services.

The company operates as a real estate investment trust (REIT), earning income from long-term lease agreements with healthcare providers and reinvesting in property development and management services.

Healthcare Realty Trust generates revenue primarily through the ownership, leasing, and management of outpatient healthcare real estate properties across the United States.

Its primary customers are healthcare systems, physician groups, and outpatient service providers seeking modern, purpose-built medical office facilities.

Foolish take

Resolution Capital is a specialist buyer of healthcare real estate, which makes its decision to open a new position in Healthcare Realty Trust notable. The firm added the REIT after a year when the stock lagged the broader market, pointing to a judgment that the underlying income stream remains intact despite investor caution toward the sector.

Healthcare Realty Trust owns outpatient medical buildings leased to health systems and physician groups. This is not a growth vehicle built for rapid expansion. It is a portfolio designed around long leases and steady usage. That dynamic has helped keep cash flow steady while higher interest rates pressured REIT valuations more broadly. Its shares have trailed the market, but the operating picture has been more stable than the price suggests. Rent checks are still coming in, and occupancy has not shown the cracks investors often expect in a slower environment.

For investors, the question remains to be whether the portfolio can continue to fund its dividend without strain as financing conditions settle. If cash flow keeps clearing that bar, Healthcare Realty may start to trade less like a rate trade and more like what it actually is: a steady owner of buildings tied to everyday healthcare delivery.

Glossary

Real Estate Investment Trust (REIT): A company that owns, operates, or finances income-producing real estate and distributes most income as dividends.
13F reportable assets under management (AUM): The total value of securities a fund manager must disclose quarterly to the SEC in a 13F filing.
New position: When an investor or fund acquires shares of a company not previously held in their portfolio.
Dividend yield: Annual dividend income expressed as a percentage of the stock's current price.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Outpatient healthcare real estate: Properties designed for medical services that do not require overnight hospital stays, such as clinics or medical offices.
Assets under management (AUM): The total market value of investments managed by a financial institution or fund.
Quarter-end: The last day of a financial quarter, used as a reference point for reporting financial data.
Portfolio: A collection of investments held by an individual or institution.
Long-term lease agreements: Contracts to rent property for several years, providing stable income to property owners.

Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Digital Realty Trust and Equinix. The Motley Fool recommends Extra Space Storage. The Motley Fool has a disclosure policy.