KING OF PRUSSIA, PA — Universal Health Realty Income Trust (NYSE: UHT) reported net income of $4.3 million, or $0.31 per diluted share, for the fourth quarter of 2025, down from $4.7 million, or $0.34 per diluted share, in the same period of 2024.
The $337,000 decline in quarterly net income was driven largely by lower income from certain properties, partially offset by reduced interest expense tied to lower borrowing rates, the company said.
The decrease in property income was primarily linked to a medical office building in Amarillo, Texas, which was vacated during the fourth quarter after the leases of two tenants expired.
The company said it is currently marketing the building to potential tenants.
Funds from operations, a measure commonly used by real estate investment trusts that excludes depreciation and amortization, totaled $11.74 million, or $0.85 per diluted share, compared with $11.76 million, or $0.85 per diluted share, in the fourth quarter of 2024.
For the full year, net income totaled $17.6 million, or $1.27 per diluted share, compared with $19.2 million, or $1.39 per diluted share, in 2024.
The $1.6 million annual decline reflected reduced income generated at several properties and nonrecurring depreciation expense recorded during the third quarter of 2025, the company said.
Funds from operations for the year totaled $47.7 million, or $3.44 per diluted share, compared with $47.9 million, or $3.46 per diluted share, in 2024.
The company declared a fourth-quarter dividend of $0.745 per share, totaling $10.3 million, which was declared December 22, 2025, and paid December 31, 2025.
As of December 31, 2025, the company had $68.8 million available under its $425 million credit facility after $356.2 million in borrowings.
Universal Health Realty Income Trust said the credit agreement is scheduled to expire September 30, 2028, with options to extend the agreement for up to two additional six-month periods.
In October 2025, the company entered a ground lease with a subsidiary of Universal Health Services to develop Palm Beach Gardens Medical Plaza I, an 80,000-square-foot medical office building in Palm Beach Gardens, Florida.
The building will be located on the campus of the Alan B. Miller Medical Center, an acute care hospital scheduled to open in the second quarter of 2026.
Construction began in February and is expected to be completed in the fourth quarter of 2026, with development costs estimated at approximately $34 million.
A subsidiary of Universal Health Services has signed a 10-year master flex lease covering about 75 percent of the building’s rentable space, subject to reductions as third-party leases are executed.
Universal Health Realty Income Trust said it currently has investments or commitments in 77 healthcare-related properties across 21 states, including hospitals, behavioral health facilities, medical office buildings, emergency departments, and childcare centers.
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