KING OF PRUSSIA, PA — Universal Health Realty Income Trust (NYSE: UHT) reported third-quarter 2025 net income of $4.0 million, or $0.29 per diluted share, unchanged from the same period a year earlier, as modest property income gains offset higher depreciation expenses.
The company said results for the quarter included a $275,000 one-time benefit from a settlement related to one of its medical office buildings and a $256,000 decrease in net property income, largely tied to $900,000 in nonrecurring depreciation recorded during the quarter.
Funds from operations (FFO), a key measure of performance for real estate investment trusts, rose to $12.2 million, or $0.88 per diluted share, up from $11.3 million, or $0.82 per share, in the third quarter of 2024.
For the first nine months of 2025, UHT reported net income of $13.3 million, or $0.96 per diluted share, compared to $14.6 million, or $1.05 per share, in the same period last year. The decline reflected lower income at several properties, a prior-year property tax benefit that did not repeat, and slightly higher interest expense. Year-to-date FFO totaled $35.9 million, or $2.59 per share, compared with $36.1 million, or $2.61 per share, in 2024.
UHT paid a third-quarter dividend of $0.74 per share on September 30, totaling $10.3 million. As of September 30, the trust had $357.1 million in borrowings under its $425 million credit facility, leaving $67.9 million in available capacity. The credit agreement runs through September 2028 and can be extended twice for six months each.
In October, UHT announced plans to develop Palm Beach Gardens Medical Plaza I, an 80,000-square-foot medical office building on the campus of the new Alan B. Miller Medical Center in Florida. Construction is expected to begin in November 2025 at an estimated cost of $34 million. A wholly owned subsidiary of Universal Health Services (UHS) will manage the project and has signed a 10-year master lease for approximately 75% of the building’s rentable space.
Universal Health Realty Income Trust invests in healthcare and human services facilities nationwide, with holdings in 77 properties across 21 states, including acute care hospitals, behavioral health centers, medical offices, and specialty facilities.
The trust noted that while results remained steady, rising interest rates and macroeconomic uncertainty continue to challenge healthcare real estate operators. Nonetheless, management said its focus on high-quality medical properties and long-term tenant relationships positions the trust for continued stability in the evolving healthcare sector.
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