Universal Health Realty Income Trust Q3 profit rises, helped by lower interest costs

Overview

• US healthcare REIT reported Q3 net income and EPS up yr/yr

• Q3 funds from operations rose slightly from prior year

• Net income growth driven by lower interest expense and nonrecurring prior-year costs

Outlook

• Company expects to record a gain of about $1.9 mln in Q4 from land sale

• Construction of Miller Medical Plaza expected to complete in Dec 2026 at estimated $34 mln cost

• Company notes higher interest rates could significantly impact future results and capital access

Result Drivers

• LOWER DEPRECIATION EXPENSE - Co said Q3 net income increased mainly due to nonrecurring depreciation expense recorded in prior-year quarter

• REDUCED INTEREST EXPENSE - Co said decrease in interest expense from lower average effective borrowing rate contributed to net income growth

• ABSENCE OF ONE-TIME SETTLEMENT - Co said prior-year results included a one-time settlement and release agreement, which did not recur in Q3 2026

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Universal Health Realty Income Trust is $44.00, about 16.7% above its October 26 closing price of $37.71

Reuters Recommended Reads

• Oct 26 - Welltower Q3 normalized FFO per share rises 25%, guidance raised

• Oct 26 - Easterly Government Properties Q3 Core FFO tops estimates

• Oct 27 - HCA Healthcare Q3 revenue rises on admissions, emergency room visits growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)