UHT provides essential healthcare real estate infrastructure through a diversified portfolio of medical office buildings and ambulatory surgery centers across the US.
UHT offers exposure to the resilient healthcare real estate sector which tends to outperform other commercial segments during economic downturns due to essential tenant demand. The diversified portfolio of medical office buildings provides stable rental income streams backed by long-term leases with creditworthy physician and hospital tenants. Investors may value the company for its established track record in acquiring and managing high-quality assets that support critical healthcare access.
The REIT carries significant debt obligations evidenced by substantial cash flow outflows, which could be vulnerable to rising interest rates or refinancing challenges. Net income has been inconsistent recently, dropping from a 2022 peak of $21.1M to $17.6M in 2025, suggesting potential margin compression or one-time costs affecting earnings quality. The retained earnings deficit of $862.9M indicates historical capital needs or distributions that exceed current net profit generation capabilities.
Universal Health Realty Income Trust (UHT) is a Real Estate Investment Trust focused on providing healthcare real estate solutions to physicians and hospitals across the United States. The company owns and operates medical office buildings, surgical centers, and ambulatory surgery facilities primarily serving the outpatient care market. With a diversified portfolio of high-quality assets, UHT generates stable rental income while navigating the evolving landscape of healthcare delivery.
The company reported revenue of $99.2M in 2025, a slight increase from the previous year, while net profit settled at $17.6M, showing volatility compared to the 2024 figure of $19.2M. Cash flow from operations reached $49.1M, demonstrating strong underlying asset performance despite significant cash outflows for financing activities totaling -$34.5M and investing activities of -$15.0M. The balance sheet shows total assets of $564.9M against liabilities of $412.5M, with shareholders equity standing at $152.4M.
The healthcare real estate industry is dominated by REITs that own and lease properties to providers of outpatient care, including primary care physicians, specialists, and surgical centers. This sector is generally defensive as demand for medical services remains inelastic regardless of economic cycles, providing stable cash flows for investors. However, the industry faces headwinds from high construction costs, regulatory changes affecting reimbursement rates, and competition from non-REIT healthcare developers.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $90.6M | $95.6M | $99.0M | $99.2M |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $90.6M | $95.6M | $99.0M | $99.2M |
| Operating Expenses | $60.0M | $64.2M | $62.2M | $64.4M |
| Operating Income | $30.7M | $31.3M | $36.8M | $34.8M |
| Stock-Based Comp | $780.0K | $780.0K | $853.0K | $936.0K |
| D&A | $26.6M | $27.7M | $27.4M | $28.9M |
| Depreciation | $23.3M | $24.6M | $24.5M | $26.0M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Pre-Tax Income | $30.7M | $31.3M | $36.8M | $34.8M |
| Income Tax | $9.6M | $15.9M | $17.6M | $17.2M |
| Continuing Ops | $21.1M | $15.4M | $19.2M | $17.6M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $21.1M | $15.4M | $19.2M | $17.6M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $21.1M | $15.4M | $19.2M | $17.6M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $7.6M | $8.2M | $7.1M | $6.7M |
| Intangibles | $9.4M | $9.1M | $7.3M | $5.6M |
| Operating Leases | $11.5M | $10.9M | $10.9M | $11.4M |
| Total Assets | $607.5M | $596.4M | $580.9M | $564.9M |
| Total Liabilities | $378.4M | $395.4M | $401.3M | $412.5M |
| Shareholders' Equity | $229.1M | $200.9M | $179.5M | $152.4M |
| Retained Earnings | $810.7M | $826.1M | $845.3M | $862.9M |
| AOCI | $12.0M | $7.3M | $6.4M | $1.6M |
| Total L&E | $607.5M | $596.4M | $580.9M | $564.9M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $21.1M | $15.4M | $19.2M | $17.6M |
| Non-Cash Adjustments | $23.3M | $28.7M | $28.4M | $29.5M |
| Working Capital Changes | $2.4M | $-1.2M | $-720.0K | $2.0M |
| Cash from Operations | $46.8M | $42.9M | $46.9M | $49.1M |
| Capital Expenditures | $13.6M | $7.6M | — | — |
| Cash from Investing | $-36.7M | $-19.1M | $-13.9M | $-15.0M |
| Dividends Paid | $39.2M | $39.8M | $40.4M | $41.0M |
| Cash from Financing | $-25.0M | $-23.2M | $-34.1M | $-34.5M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-14.9M | $598.0K | $-1.1M | $-411.0K |
| Beginning Cash | $22.5M | $7.6M | $8.2M | $7.1M |
| Ending Cash | $7.6M | $8.2M | $7.1M | $6.7M |
Primary revenue streams include long-term lease agreements with physician groups and hospital systems for medical office buildings, as well as leases from surgical center operators for ambulatory surgery facilities. A significant portion of earnings is derived from rental income on core healthcare properties that serve critical outpatient care needs in various metropolitan regions. Additional financial data reflects adjustments for non-cash items like depreciation and share-based compensation within its real estate operations.
Elevated interest rate environments increase the cost of capital for debt-heavy REIT structures like UHT, potentially compressing net operating income. Rising commercial real estate vacancy rates or shifts in healthcare policy could impact tenant demand and lease renewal rates for specific property types. The company faces significant leverage risks as seen in its substantial cash flow from financing outflows relative to operating inflows.
UHT benefits from a highly diversified geographic footprint and tenant mix that reduces exposure to any single market or specialty provider failure. The company's extensive experience in healthcare real estate allows it to execute strategic acquisitions and lease renewals effectively, maintaining long-term occupancy rates typical of essential medical infrastructure. Strong relationships with major hospital networks provide stability in lease terms and payment reliability.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.