UHT Posts Q2 Profit and FFO Decline
Universal Health Realty Income Trust (NYSE:UHT), a real estate investment trust (REIT) that owns and invests in healthcare-related facilities, reported its earnings for the second quarter of fiscal 2025 on July 28, 2025. The most significant headline from this release was the year-over-year decline in both net income and FFO per share (non-GAAP), driven by the absence of a prior-year property tax benefit and higher interest costs. Revenue increased slightly compared to the prior year. There was no published Wall Street consensus to compare these results to. Overall, this quarter showed stable but pressured financial performance, with ongoing portfolio diversification and a slight dividend increase (dividend paid per share: $0.74, up from $0.73 a year ago).
Universal Health Realty Income Trust is a healthcare-focused REIT with a portfolio that includes hospitals, medical office buildings (MOBs), behavioral health facilities, and other outpatient centers. It owns 76 properties distributed across 21 states, leasing to both related and third-party healthcare providers. A critical pillar for the business is its longstanding relationship with Universal Health Services, Inc. (UHS), which is both a major tenant and the external advisor to the REIT.
Universal Health Realty Income Trust distributes at least 90% of its taxable Income as dividends to maintain compliance with REIT status. Its key success factors include the ability to find and manage high-performing healthcare properties, navigate regulatory changes in healthcare reimbursement, and manage debt efficiently to protect earnings in a rising interest rate environment.
Source Fool.com
