UNIVERSAL HEALTH REALTY INCOME TRUST REPORTS FINANCIAL RESULTS FOR THE THREE AND TWELVE-MONTH PERIODS ENDED DECEMBER 31, 2025
Rhea-AI Summary
Universal Health Realty Income Trust (NYSE:UHT) reported net income of $4.3 million, or $0.31 per diluted share, for Q4 2025 and $17.6 million, or $1.27 per diluted share, for the year ended December 31, 2025. FFO was $11.74 million ($0.85/share) for Q4 and $47.7 million ($3.44/share) for the year. The company paid a Q4 dividend of $0.745 per share. Capital liquidity included $68.8 million of available borrowing capacity under a $425 million credit agreement. Construction began on Palm Beach Gardens Medical Plaza I, an 80,000 sq ft MOB estimated at $34 million.
Positive
- FFO largely stable at $3.44 per share for 2025
- Q4 dividend of $0.745 paid on December 31, 2025
- Construction commenced on Palm Beach Gardens 80,000 sq ft MOB
Negative
- Net income down to $1.27 per share for 2025 (from $1.39)
- Vacancy at Amarillo MOB caused decreased Q4 net aggregate income
- Nonrecurring depreciation of approximately $900,000 recorded in Q3 2025
Key Figures
Market Reality Check
Peers on Argus
UHT was up 0.09%. Peers were mixed: DHC gained 7.04%, CHCT and STRW rose about 0.65%, while GMRE fell 0.61% and SILA was flat, indicating stock-specific action rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 27 | Trust earnings release | Neutral | +2.1% | Q3 2025 results with slightly higher FFO and notable nonrecurring items. |
| Jul 28 | Trust earnings release | Negative | -1.9% | Q2 2025 net income and FFO declined versus Q2 2024 performance. |
| Jul 28 | Parent company earnings | Positive | -1.9% | UHS reported strong Q2 2025 results and raised full-year guidance. |
| Apr 28 | Trust earnings release | Negative | -0.5% | Q1 2025 net income declined amid lower property income and higher interest. |
| Apr 28 | Parent company earnings | Positive | -0.5% | UHS posted strong Q1 2025 growth in income and revenues. |
Earnings-related headlines have produced modest average moves of about -0.55%, with UHT’s own weaker quarters generally seeing small negative reactions.
Across recent 2025 earnings releases, UHT has reported lower net income versus prior-year periods, while FFO remained relatively stable. Q1 and Q2 2025 showed declines in performance, and Q3 2025 highlighted slightly higher FFO but also nonrecurring depreciation. The trust has maintained regular dividends and continued development projects such as the Palm Beach Gardens MOB. Today’s full-year and Q4 2025 results extend this theme of softer earnings with largely steady cash-flow metrics.
Historical Comparison
Over the last 5 earnings-related events, average move was about -0.55%. Today’s roughly flat 0.09% reaction to softer 2025 results fits the pattern of muted responses.
Across 2025, UHT earnings releases have repeatedly shown year-over-year net income pressure while FFO stayed comparatively stable, alongside continued investment in projects like the Palm Beach Gardens MOB.
Market Pulse Summary
This announcement details softer 2025 net income alongside relatively stable FFO, continued quarterly dividends of $0.745 per share, and ongoing development of the $34M Palm Beach Gardens medical office building backed by a 10‑year master flex lease. Historical earnings releases in 2025 also showed modest declines. Investors may focus on property re‑leasing progress, income trends at key facilities, borrowing capacity under the $425M credit agreement, and execution on development commitments.
Key Terms
funds from operations ("FFO") financial
non-gaap financial
ground lease financial
real estate investment trust financial
AI-generated analysis. Not financial advice.
Consolidated Results of Operations - Three-Month Periods Ended December 31, 2025 and 2024:
The decrease in our net income of
As calculated on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our funds from operations ("FFO"), which excludes depreciation and amortization expense, decreased slightly to
Consolidated Results of Operations - Twelve-Month Periods Ended December 31, 2025 and 2024:
For the twelve-month period ended December 31, 2025, net income was
The decrease in our net income of
As calculated on the attached Supplemental Schedule, our FFO, which excludes depreciation and amortization expense, decreased by
Dividend Information:
The fourth quarter dividend of
Capital Resources Information:
As of December 31, 2025, pursuant the terms of our
Palm Beach Gardens Medical Plaza I:
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 Palm Beach Gardens Medical Plaza I, 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, recently commenced in February 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 and Twelve Months Ended December 31, 2025 and 2024 (amounts in thousands, except share information) (unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenues: | ||||||||||||||||
Lease revenue - UHS facilities (a.) | $ | 8,297 | $ | 8,261 | $ | 33,372 | $ | 33,627 | ||||||||
Lease revenue - Non-related parties | 14,059 | 14,472 | 57,735 | 57,660 | ||||||||||||
Other revenue - UHS facilities | 234 | 220 | 933 | 902 | ||||||||||||
Other revenue - Non-related parties | 537 | 334 | 1,755 | 1,390 | ||||||||||||
Interest income on financing leases - UHS facilities | 1,345 | 1,355 | 5,395 | 5,432 | ||||||||||||
24,472 | 24,642 | 99,190 | 99,011 | |||||||||||||
Expenses: | ||||||||||||||||
Depreciation and amortization | 7,117 | 6,797 | 28,859 | 27,421 | ||||||||||||
Advisory fees to UHS | 1,426 | 1,388 | 5,595 | 5,481 | ||||||||||||
Other operating expenses | 7,438 | 7,198 | 29,973 | 29,313 | ||||||||||||
15,981 | 15,383 | 64,427 | 62,215 | |||||||||||||
Income before equity in income of unconsolidated limited | 8,491 | 9,259 | 34,763 | 36,796 | ||||||||||||
Equity in income of unconsolidated LLCs | 481 | 323 | 1,696 | 1,279 | ||||||||||||
Interest expense, net | (4,648) | (4,921) | (18,850) | (18,841) | ||||||||||||
Net income | $ | 4,324 | $ | 4,661 | $ | 17,609 | $ | 19,234 | ||||||||
Basic earnings per share | $ | 0.31 | $ | 0.34 | $ | 1.27 | $ | 1.39 | ||||||||
Diluted earnings per share | $ | 0.31 | $ | 0.34 | $ | 1.27 | $ | 1.39 | ||||||||
Weighted average number of shares outstanding - Basic | 13,832 | 13,809 | 13,821 | 13,802 | ||||||||||||
Weighted average number of shares outstanding - Diluted | 13,874 | 13,850 | 13,864 | 13,839 | ||||||||||||
(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 December 31, 2025 and 2024 (amounts in thousands, except share information) (unaudited)
Calculation of Funds From Operations ("FFO") | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
December 31, 2025 | December 31, 2024 | |||||||||||||||
Amount | Per | Amount | Per | |||||||||||||
Net income | $ | 4,324 | $ | 0.31 | $ | 4,661 | $ | 0.34 | ||||||||
Plus: Depreciation and amortization expense: | ||||||||||||||||
Consolidated investments | 7,117 | 0.51 | 6,797 | 0.49 | ||||||||||||
Unconsolidated affiliates | 299 | 0.03 | 300 | 0.02 | ||||||||||||
FFO | $ | 11,740 | $ | 0.85 | $ | 11,758 | $ | 0.85 | ||||||||
Dividend paid per share | $ | 0.745 | $ | 0.735 | ||||||||||||
Universal Health Realty Income Trust Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") For the Twelve Months Ended December 31, 2025 and 2024 (amounts in thousands, except share information) (unaudited) Calculation of Funds From Operations ("FFO") | ||||||||||||||||
Twelve Months Ended | Twelve Months Ended | |||||||||||||||
December 31, 2025 | December 31, 2024 | |||||||||||||||
Amount | Per | Amount | Per | |||||||||||||
Net income | $ | 17,609 | $ | 1.27 | $ | 19,234 | $ | 1.39 | ||||||||
Plus: Depreciation and amortization expense: | ||||||||||||||||
Consolidated investments | 28,859 | 2.08 | 27,421 | 1.98 | ||||||||||||
Unconsolidated affiliates | 1,221 | 0.09 | 1,218 | 0.09 | ||||||||||||
FFO | $ | 47,689 | $ | 3.44 | $ | 47,873 | $ | 3.46 | ||||||||
Dividend paid per share | $ | 2.960 | $ | 2.920 | ||||||||||||
Universal Health Realty Income Trust Consolidated Balance Sheets (amounts in thousands, except share information) (unaudited) | ||||||||
December 31, | December 31, | |||||||
2025 | 2024 | |||||||
Assets: | ||||||||
Real Estate Investments: | ||||||||
Buildings and improvements and construction in progress | $ | 666,122 | $ | 655,996 | ||||
Accumulated depreciation | (312,982) | (286,932) | ||||||
353,140 | 369,064 | |||||||
Land | 56,870 | 56,870 | ||||||
Net Real Estate Investments | 410,010 | 425,934 | ||||||
Financing receivable from UHS | 82,148 | 82,798 | ||||||
Net Real Estate Investments and Financing receivable | 492,158 | 508,732 | ||||||
Investments in limited liability companies ("LLCs") | 20,125 | 13,948 | ||||||
Other Assets: | ||||||||
Cash and cash equivalents | 6,686 | 7,097 | ||||||
Lease and other receivables from UHS | 7,530 | 7,131 | ||||||
Lease receivable - other | 8,034 | 7,975 | ||||||
Intangible assets (net of accumulated amortization of | 5,640 | 7,325 | ||||||
Right-of-use land assets, net | 11,395 | 10,918 | ||||||
Deferred charges, notes receivable and other assets, net | 13,339 | 17,736 | ||||||
Total Assets | $ | 564,907 | $ | 580,862 | ||||
Liabilities: | ||||||||
Line of credit borrowings | $ | 356,200 | $ | 348,900 | ||||
Mortgage notes payable, non-recourse to us, net | 18,435 | 19,349 | ||||||
Accrued interest | 910 | 694 | ||||||
Accrued expenses and other liabilities | 13,785 | 10,444 | ||||||
Ground lease liabilities, net | 11,398 | 10,918 | ||||||
Tenant reserves, deposits and deferred and prepaid rents | 11,795 | 11,016 | ||||||
Total Liabilities | 412,523 | 401,321 | ||||||
Equity: | ||||||||
Preferred shares of beneficial interest, | - | - | ||||||
Common shares, | 139 | 138 | ||||||
Capital in excess of par value | 272,147 | 271,092 | ||||||
Cumulative net income and other | 862,904 | 845,295 | ||||||
Cumulative dividends | (984,443) | (943,396) | ||||||
Accumulated other comprehensive income | 1,637 | 6,412 | ||||||
Total Equity | 152,384 | 179,541 | ||||||
Total Liabilities and Equity | $ | 564,907 | $ | 580,862 | ||||
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SOURCE Universal Health Realty Income Trust
FAQ
What were Universal Health Realty (UHT) net income and EPS for Q4 2025?
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