Healthcare Realty Trust downgraded to Neutral from Outperform at Wedbush

As previously reported, Wedbush downgraded Healthcare Realty Trust to Neutral from Outperform with a price target of $15, down from $19.The firm is resetting its thoughts on three office REITs following Q4 results. Last quarter, the company unveiled an NOI bridge that is expected to result in its multi-tenant portfolio same store NOI climbing from mid-2% to 5% by the end of this year. That is still the expectation as of Q4 and leasing volumes remain solid, but the occupancy component to the bridge math drifted down as a result of recent asset sales and one development, Wedbush says. Even if that proves to be the extent of it, tinkering with the bridge in its first update wasn’t a good look, as Healthcare Realty Trust battles the tape on leverage and dividend questions, the firm adds.