KING OF PRUSSIA, PA — Universal Health Realty Income Trust (NYSE: UHT) reported higher second-quarter earnings and funds from operations as increased property income and lower borrowing costs strengthened results, while a land sale added $724,000 to reported profit.
Net income rose to $5.9 million, or 43 cents per diluted share, from $4.5 million, or 32 cents per share, a year earlier.
Excluding the land-sale gain, adjusted net income increased to $5.2 million, or 37 cents per diluted share. That compared with $4.5 million, or 32 cents per share, in the prior-year quarter.
The healthcare real estate investment trust attributed the adjusted earnings increase to $422,000 in additional income generated across its properties and a $269,000 reduction in interest expense.
Lower average effective borrowing rates, including the effect of interest-rate swap agreements, more than offset an increase in average borrowings under the company’s credit facility.
Funds from operations increased to $12.5 million, or 90 cents per diluted share, from $11.8 million, or 85 cents per share.
For the first six months of 2026, net income rose to $10.9 million, or 79 cents per diluted share, from $9.3 million, or 67 cents per share, a year earlier.
Adjusted first-half net income increased to $10.2 million, or 74 cents per diluted share, after excluding the land-sale gain.
First-half funds from operations climbed to $24.8 million, or $1.79 per diluted share, from $23.7 million, or $1.71 per share.
UHT paid a second-quarter dividend of 75 cents per share on June 30. The distribution totaled $10.4 million.
The company increased its credit-facility capacity to $475 million from $425 million in April. As of June 30, UHT had $365.6 million in outstanding borrowings and $109.4 million in remaining capacity.
The facility matures Sept. 30, 2028, with options for two six-month extensions.
UHT sold one of its three Chicago land parcels in June for net cash proceeds of $746,000. The property represented about 14% of the total acreage and generated the $724,000 gain recorded during the quarter.
The company is also developing Miller Medical Plaza, an 80,000-square-foot medical office building in Palm Beach Gardens, Florida, on the campus of Universal Health Services Inc.’s Alan B. Miller Medical Center.
Construction began in February and is expected to be completed in December at an estimated cost of $34 million.
A UHS subsidiary has agreed to a 10-year master flex lease covering about 75% of the building’s rentable space. The leased area may decline as UHT secures third-party tenants.
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