As previously reported, Morgan Stanley analyst Vikram Malhotra downgraded Healthcare Realty Trust (HR) and Healthcare Trust of America (HTA), both to Equal Weight from Overweight, as he recommends investors pare down their Medical Office REIT exposure. Based on his analysis of data for over 6,000 individual hospitals, Malhotra concluded that they "look to be in worse shape than investors realize." He believes even a small increase in the rate of on-campus closures could lower Medical Office REIT net operating income growth as much as 50-100bps below consensus expectations. Malhotra lowered his price target on Healthcare Realty to $28 from $29 and cut his price target on Healthcare Trust to $26 from $27.