Wells Fargo analyst Todd Stender downgraded Healthcare Realty Trust to Market Perform from Outperform and lowered his price target on the shares to $32 from $34. The analyst continues to favor the medical office building space over the intermediate term and appreciates the consistent and predictable fundamental trends in occupancy and rate growth especially for on-campus properties, like Healthcare Realty Trust owns. However, he points to the company's declining releasing spreads, limited external growth prospects over the near-term due to a higher cost of capital than market cap rates on new acquisitions of stabilized assets, and rising cap ex levels that continue to pressure the dividend payout ratio as it trends towards 100%. Further, Stender notes that Healthcare Realty Trust has maintained the same dividend rate since 2010, and without the prospect of a raise any time soon, the shares no longer warrant his highest rating.