Universal Health Realty Income Trust (UHT) reported fourth‑quarter 2025 results, posting net income of $4.3 million, or $0.31 per diluted share, down $0.03 from the same period in 2024. Revenue for the quarter was $24.47 million, a decline of about $170,000 from $24.64 million in Q4 2024. Funds from operations (FFO) were $11.74 million, or $0.85 per diluted share, essentially unchanged from the $11.76 million reported in 2024. The company declared a fourth‑quarter dividend of $0.745 per share, paid on December 31, 2025.
The revenue miss was modest but notable: UHT earned $24.47 million versus the consensus estimate of $24.9 million. The year‑over‑year decline of roughly $170,000 was largely driven by a vacancy at a medical office building in Amarillo, Texas, where two tenants’ leases expired during the quarter. Management noted that the loss of income from that property was the primary factor behind the revenue shortfall, and the company is actively marketing the space to new tenants.
Net income fell by $0.4 million from the prior year, a decline of $337,000 or $0.03 per diluted share. The drop was largely attributable to a $610,000 reduction in net aggregate income from the Amarillo property, partially offset by a $273,000 gain from lower interest expense due to a reduced borrowing rate. The combination of a weaker property portfolio and a favorable interest environment explains the modest earnings decline.
Despite the dip in net income, FFO remained flat at $11.74 million, underscoring the resilience of UHT’s operating cash flow. The stability of FFO suggests that the company’s core real‑estate operations continue to generate consistent cash, even as individual property performance fluctuates.
Management emphasized that the vacancy at the Amarillo medical office building is a temporary setback and that the company is pursuing new tenants. In addition, UHT is advancing a new medical office building project in Palm Beach Gardens, Florida, with an estimated cost of $34 million, signaling ongoing investment in growth opportunities.
The company has maintained its quarterly dividend at $0.745 per share, reflecting confidence in its cash‑generating capacity and a commitment to returning value to shareholders.
revised_sentiment_rating
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.