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

Universal Health Realty Income Trust

27/10/2026 20:29

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: ID:nPn628wBma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$0.35
 
Q3 Net Income
 
$4.93 mln
 
Q3 Basic EPS
 
$0.36
 
Q3 Dividend
 
$0.75
 

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

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(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.)