UNIVERSAL HEALTH REALTY INCOME TRUST REPORTS 2026 FIRST QUARTER FINANCIAL RESULTS
Rhea-AI Summary
Universal Health Realty Income Trust (NYSE:UHT) reported Q1 2026 results: net income $5.0M ($0.36 diluted EPS) versus $4.8M ($0.34) a year earlier, and FFO $12.3M ($0.88 per diluted share) versus $11.9M ($0.86). The company paid a $0.745 per share dividend ($10.3M) for Q1.
In April 2026 UHT amended its credit facility, increasing capacity to $475M (from $425M); borrowings were $359.5M at March 31, 2026. Construction began on the $34M Miller Medical Plaza MOB with a 10-year master flex lease covering ~75% of rentable space.
Positive
- Net income $5.0M in Q1 2026 ($0.36 per diluted share)
- FFO $12.3M in Q1 2026 ($0.88 per diluted share)
- Credit capacity increased to $475M from $425M
Negative
- Debt outstanding of $359.5M as of March 31, 2026
- Estimated Miller Medical Plaza cost approximately $34M (capital outlay during 2026)
News Market Reaction – UHT
In the Apr 28 session, UHT declined 0.15%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 25 | Q4 and FY 2025 results | Neutral | +0.2% | Q4 and full-year 2025 results with stable FFO and construction update. |
| Feb 25 | UHS FY 2025 earnings | Positive | +0.2% | Strong UHS 2025 results and 2026 guidance with higher revenues and EBITDA. |
| Oct 27 | Q3 2025 earnings | Positive | +2.1% | Q3 2025 net income and FFO growth plus Palm Beach Gardens MOB plan. |
| Jul 28 | Q2 2025 earnings | Negative | -1.9% | Q2 2025 net income and FFO declines versus prior year quarter. |
| Jul 28 | UHS Q2 2025 earnings | Positive | -1.9% | Strong UHS Q2 2025 results and raised 2025 forecast despite stock decline. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-related headlines typically see modest moves, with most UHT events aligning with the news tone and only one clear divergence tied to strong UHS results.
Recent earnings-related news for Universal Health Realty Income Trust shows relatively stable performance metrics with incremental growth. Prior quarters highlighted net income in the $4.0–4.5 million range and consistent FFO per share around the mid‑$0.80s, alongside steady dividends near $0.74–0.745 per share. Liquidity has been supported by a $425 million credit agreement and development of a $34 million, 80,000 sq ft Palm Beach Gardens MOB. Today’s Q1 2026 update continues this theme of gradual improvement in earnings and FFO.
Key Terms
funds from operations financial
ffo financial
interest rate swap agreements financial
credit agreement financial
ground lease financial
master flex lease financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Consolidated Results of Operations - Three-Month Periods Ended March 31, 2026 and 2025:
The increase in our net income of
As calculated on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our funds from operations ("FFO") were
Dividend Information:
The first quarter dividend of
Credit Agreement Amendment and Capital Resources Information:
In April, 2026, and as previously disclosed on Form 8-K as filed with the Securities and Exchange Commission on April 24, 2026, we entered into the first amendment to the second amended and restated credit agreement which increased the borrowing capacity to
As of March 31, 2026, we had
Miller Medical Plaza:
In October 2025, we entered into a ground lease with a wholly-owned subsidiary of UHS with the intent to develop, construct and own the real property of the Miller Medical Plaza, an 80,000 square foot MOB located in
Construction of this MOB, for which we have engaged a wholly-owned subsidiary of UHS to act as project manager, commenced in February 2026, and is expected to be completed during the fourth quarter of 2026. The cost of the MOB is estimated to be approximately
General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:
Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-seven properties located in twenty-one states.
This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, as well as the operations and financial results of each of our tenants, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7 - Forward-Looking Statements in our Form 10-K for the year ended December 31, 2025), may cause the results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Many of the factors that could affect our future results are beyond our control or ability to predict. Future operations and financial results of our tenants, and in turn ours, could be materially impacted by various developments including, but not limited to, potential significant reductions in federal funding for state Medicaid programs, and/or other potential changes, which would likely result in reduced Medicaid payments to the operators of our facilities; decreases in staffing availability and related increases to wage expense experienced by our tenants resulting from the shortage of nurses and other clinical staff and support personnel; the impact of government and administrative regulation of the health care industry; declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions (including increases in uninsured and underinsured patients as the result of, among other things, the December 31, 2025 expiration of the enhanced subsidies formerly granted in connection with the purchase of coverage through insurance exchanges as provided for by the Patient Protection and Affordable Care Act, business closings and layoffs); potential cost increases and disruptions related to supplies and building materials resulting from changes in laws or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from where the products or materials are made; and potential increases to other expenditures.
In addition, the increase in interest rates during the past few years has substantially increased our borrowings costs and reduced our ability to access the capital markets on favorable terms. Additional increases in interest rates could have a significant unfavorable impact on our future results of operations and the resulting effect on the capital markets could adversely affect our ability to carry out our strategy.
We believe that, if and when applicable, adjusted net income and adjusted net income per diluted share (as reflected on the Supplemental Schedule), which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in
Funds from operations ("FFO") is a widely recognized measure of performance for Real Estate Investment Trusts ("REITs"). We believe that FFO and FFO per diluted share, which are non-GAAP financial measures, are helpful to our investors as measures of our operating performance. We compute FFO, as reflected on the attached Supplemental Schedules, in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we interpret the definition. FFO adjusts for the effects of certain items, such as gains or losses on transactions that occurred during the periods presented. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income determined in accordance with GAAP. In addition, FFO should not be used as: (i) an indication of our financial performance determined in accordance with GAAP; (ii) an alternative to cash flow from operating activities determined in accordance with GAAP; (iii) a measure of our liquidity, or; (iv) an indicator of funds available for our cash needs, including our ability to make cash distributions to shareholders. A reconciliation of our reported net income to FFO is reflected on the Supplemental Schedules included below.
To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2025. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.
Universal Health Realty Income Trust Consolidated Statements of Income For the Three Months Ended March 31, 2026 and 2025 (amounts in thousands, except share information) (unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2026 | 2025 | |||||||
Revenues: | ||||||||
Lease revenue - UHS facilities (a.) | $ | 8,383 | $ | 8,327 | ||||
Lease revenue - Non-related parties | 14,202 | 14,326 | ||||||
Other revenue - UHS facilities | 236 | 229 | ||||||
Other revenue - Non-related parties | 366 | 314 | ||||||
Interest income on financing leases - UHS facilities | 1,342 | 1,352 | ||||||
24,529 | 24,548 | |||||||
Expenses: | ||||||||
Depreciation and amortization | 6,954 | 6,845 | ||||||
Advisory fees to UHS | 1,403 | 1,364 | ||||||
Other operating expenses | 7,215 | 7,305 | ||||||
15,572 | 15,514 | |||||||
Income before equity in income of unconsolidated limited liability companies | 8,957 | 9,034 | ||||||
Equity in income of unconsolidated LLCs | 514 | 412 | ||||||
Interest expense, net | (4,452) | (4,669) | ||||||
Net income | $ | 5,019 | $ | 4,777 | ||||
Basic earnings per share | $ | 0.36 | $ | 0.35 | ||||
Diluted earnings per share | $ | 0.36 | $ | 0.34 | ||||
Weighted average number of shares outstanding - Basic | 13,833 | 13,810 | ||||||
Weighted average number of shares outstanding - Diluted | 13,875 | 13,851 | ||||||
(a.) Includes bonus rental on McAllen Medical Center, a UHS acute care hospital facility, of | ||||||||
Universal Health Realty Income Trust Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") For the Three Months Ended March 31, 2026 and 2025 (amounts in thousands, except share information) (unaudited) Calculation of Funds From Operations ("FFO") | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
March 31, 2026 | March 31, 2025 | |||||||||||||||
Amount | Per | Amount | Per | |||||||||||||
Net income | $ | 5,019 | $ | 0.36 | $ | 4,777 | $ | 0.34 | ||||||||
Plus: Depreciation and amortization expense: | ||||||||||||||||
Consolidated investments | 6,954 | 0.50 | 6,845 | 0.50 | ||||||||||||
Unconsolidated affiliates | 293 | 0.02 | 308 | 0.02 | ||||||||||||
FFO | $ | 12,266 | $ | 0.88 | $ | 11,930 | $ | 0.86 | ||||||||
Dividend paid per share | $ | 0.745 | $ | 0.735 | ||||||||||||
Universal Health Realty Income Trust Consolidated Balance Sheets (amounts in thousands, except share information) (unaudited) | ||||||||
March 31, | December 31, | |||||||
2026 | 2025 | |||||||
Assets: | ||||||||
Real Estate Investments: | ||||||||
Buildings and improvements and construction in progress | $ | 671,519 | $ | 666,122 | ||||
Accumulated depreciation | (319,269) | (312,982) | ||||||
352,250 | 353,140 | |||||||
Land | 56,870 | 56,870 | ||||||
Net Real Estate Investments | 409,120 | 410,010 | ||||||
Financing receivable from UHS | 81,945 | 82,148 | ||||||
Net Real Estate Investments and Financing receivable | 491,065 | 492,158 | ||||||
Investments in limited liability companies ("LLCs") | 20,360 | 20,125 | ||||||
Other Assets: | ||||||||
Cash and cash equivalents | 7,064 | 6,686 | ||||||
Lease and other receivables from UHS | 7,382 | 7,530 | ||||||
Lease receivable - other | 8,072 | 8,034 | ||||||
Intangible assets (net of accumulated amortization of | 5,255 | 5,640 | ||||||
Right-of-use land assets, net | 11,386 | 11,395 | ||||||
Deferred charges, notes receivable and other assets, net | 13,179 | 13,339 | ||||||
Total Assets | $ | 563,763 | $ | 564,907 | ||||
Liabilities: | ||||||||
Line of credit borrowings | $ | 359,500 | $ | 356,200 | ||||
Mortgage notes payable, non-recourse to us, net | 18,293 | 18,435 | ||||||
Accrued interest | 664 | 910 | ||||||
Accrued expenses and other liabilities | 13,841 | 13,785 | ||||||
Ground lease liabilities, net | 11,399 | 11,398 | ||||||
Tenant reserves, deposits and deferred and prepaid rents | 12,263 | 11,795 | ||||||
Total Liabilities | 415,960 | 412,523 | ||||||
Equity: | ||||||||
Preferred shares of beneficial interest, | - | - | ||||||
Common shares, | 139 | 139 | ||||||
Capital in excess of par value | 272,375 | 272,147 | ||||||
Cumulative net income and other | 867,923 | 862,904 | ||||||
Cumulative dividends | (994,779) | (984,443) | ||||||
Accumulated other comprehensive income | 2,145 | 1,637 | ||||||
Total Equity | 147,803 | 152,384 | ||||||
Total Liabilities and Equity | $ | 563,763 | $ | 564,907 | ||||
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SOURCE Universal Health Realty Income Trust