Universal Health Realty Income Trust (UHT) | Investment Case

1. Company Snapshot

1.a. Company Description

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human service related facilities including acute care hospitals, rehabilitation hospitals, sub-acute care facilities, medical/office buildings, free-standing emergency departments and childcare centers.We have investments in seventy-one properties located in twenty states, including two that are currently under construction.

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1.b. Last Insights on UHT

Here is a 90-word analysis of the drivers behind Universal Health Realty Income Trust's recent stock performance: Universal Health Realty Income Trust's recent performance was driven by a dividend increase announcement and a positive analyst rating. The trust's decision to increase its quarterly dividend by $0.005 and pay a dividend of $0.735 per share on December 31, 2024, is expected to have a positive impact on shareholders. Additionally, the "Outperform" rating from Zacks is a positive sign for the trust's stock.

1.c. Company Highlights

Last Price	39.84
Change Percentage	-0.45%
Open	39.88
Previous Close	40.02
Market Cap ( Millions)	553
Volume	49658
Year High	42.46
Year Low	34.56
M A 50	38.35
M A 200	39.56

FCF Yield	6.96%
Dividend Yield	7.40%
ROE	10.63%
Debt / Equity	243.75%
Net Debt / EBIDTA	485.14%
Price To Book	3.47
Price Earnings Ratio	30.68
Price To FCF	14.38
Price To sales	5.56
EV / EBITDA	11.92

2. Transcript Summary

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3. NewsRoom

Hantz Financial Services Inc. Increases Stock Position in Universal Health Realty Income Trust $UHT

Nov -06

Source: defenseworld.net

REIT Replay: REIT Indexes Close Final Week Of October In The Red

Nov -04

Source: seekingalpha.com

Universal Health Realty Stock Up Post Steady Q3 Earnings and Dividend

Oct -31

Source: zacks.com

UNIVERSAL HEALTH REALTY INCOME TRUST REPORTS FINANCIAL RESULTS FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025

Oct -27

Source: prnewswire.com

UNIVERSAL HEALTH SERVICES, INC. ANNOUNCES FINANCIAL RESULTS FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025, INCREASES 2025 FULL YEAR OPERATING RESULTS FORECAST AND ANNOUNCES $1.5 BILLION INCREASE TO STOCK REPURCHASE PROGRAM AUTHORIZATION

Oct -27

Source: prnewswire.com

Boomers Love 5 High-Yield Dividend Champions for Reliable Passive Income

Oct -07

Source: 247wallst.com

Universal Health Services, Inc. Appoints Darren Lehrich as Vice President of Investor Relations

Sep -15

Source: prnewswire.com

UNIVERSAL HEALTH REALTY INCOME TRUST ANNOUNCES DIVIDEND

Sep -10

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.55%)

6. Segments

Base Rents

Expected Growth: 3.5%

Stable source of income from minimum rent guarantees, increasing demand for healthcare services, and a growing portfolio of medical facilities drive growth in Base Rents for Universal Health Realty Income Trust.

Tenant Reimbursements

Expected Growth: 3.5%

Tenant reimbursements from Universal Health Realty Income Trust are driven by increasing demand for medical office spaces, growing healthcare expenditure, and a shift towards outpatient care. These factors are expected to fuel growth in reimbursements, supporting the trust's revenue stream.

Interest Income on Financing Leases - Universal Health Services Facilities

Expected Growth: 4.5%

Growing demand for healthcare services, increasing investments in healthcare infrastructure, and strategic partnerships between Universal Health Services and Universal Health Realty Income Trust drive interest income growth.

Bonus Rents

Expected Growth: 3.5%

Bonus Rents from Universal Health Realty Income Trust are driven by increasing demand for healthcare services, aging population, and growing healthcare expenditure. As hospitals and medical facilities exceed occupancy and revenue targets, they pay additional rents, fueling growth in this segment.

Other

Expected Growth: 3.5%

Rental income from medical office buildings and non-hospital properties is expected to grow, driven by increasing demand for healthcare services, aging population, and consolidation in the healthcare industry.

7. Detailed Products

Medical Office Buildings

Universal Health Realty Income Trust invests in medical office buildings, providing healthcare providers with modern facilities to deliver high-quality patient care.

Surgical Hospitals

The company invests in surgical hospitals, offering specialized surgical services and outpatient procedures.

Emergency Departments

Universal Health Realty Income Trust invests in emergency departments, providing immediate care to patients in need of urgent medical attention.

Rehabilitation Hospitals

The company invests in rehabilitation hospitals, offering specialized care and therapy to patients recovering from injuries or illnesses.

Long-Term Acute Care Hospitals

Universal Health Realty Income Trust invests in long-term acute care hospitals, providing extended medical care to patients with complex medical needs.

Free-Standing Emergency Departments

The company invests in free-standing emergency departments, offering convenient, 24/7 emergency care to patients in need of immediate attention.

8. Universal Health Realty Income Trust's Porter Forces

Forces Ranking

Threat Of Substitutes

Universal Health Realty Income Trust has a diversified portfolio of healthcare properties, which reduces the threat of substitutes. The company's focus on medical office buildings and healthcare facilities also limits the availability of substitutes.

Bargaining Power Of Customers

The bargaining power of customers is moderate, as Universal Health Realty Income Trust has a diverse tenant base, including healthcare systems, medical groups, and individual physicians. However, the company's concentration in the healthcare industry makes it vulnerable to changes in healthcare policy and reimbursement rates.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low, as Universal Health Realty Income Trust has a diversified portfolio of properties and a strong balance sheet, which gives it negotiating power over suppliers.

Threat Of New Entrants

The threat of new entrants is low, as Universal Health Realty Income Trust has a strong brand and a diversified portfolio of properties, which creates barriers to entry for new competitors.

Intensity Of Rivalry

The intensity of rivalry is moderate, as Universal Health Realty Income Trust operates in a competitive industry with several established players. However, the company's focus on healthcare properties and its diversified portfolio help to differentiate it from competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	64.14%
Debt Cost	3.95%
Equity Weight	35.86%
Equity Cost	7.81%
WACC	5.33%
Leverage	178.90%

11. Quality Control: Universal Health Realty Income Trust passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Manhattan Bridge Capital

A-Score: 7.1/10

Value: 4.5

Growth: 5.0

Quality: 8.2

Yield: 10.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

LTC Properties

A-Score: 6.7/10

Value: 4.0

Growth: 4.1

Quality: 7.3

Yield: 9.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

Universal Health Realty Trust

A-Score: 6.0/10

Value: 3.8

Growth: 3.6

Quality: 5.6

Yield: 10.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

Community Healthcare Trust

A-Score: 5.9/10

Value: 6.4

Growth: 2.8

Quality: 5.4

Yield: 10.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

Global Medical REIT

A-Score: 5.5/10

Value: 5.7

Growth: 5.0

Quality: 4.2

Yield: 9.0

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

Diversified Healthcare Trust

A-Score: 4.4/10

Value: 7.9

Growth: 2.7

Quality: 2.7

Yield: 3.0

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.43%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.33%

Universal Health Realty Income Trust - US91359E1055

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on UHT

1.c. Company Highlights

Weak Momentum

Fairly Valued

Average Yield

Average Quality

Stable Momentum

Expensive

Medium Volatility

Strong Momentum

Better Quality

Revenues Beats

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.55%)

6. Segments

Base Rents

Expected Growth: 3.5%

Tenant Reimbursements

Expected Growth: 3.5%

Interest Income on Financing Leases - Universal Health Services Facilities

Expected Growth: 4.5%

Bonus Rents

Expected Growth: 3.5%

Other

Expected Growth: 3.5%

7. Detailed Products

Medical Office Buildings

Surgical Hospitals

Emergency Departments

Rehabilitation Hospitals

Long-Term Acute Care Hospitals

Free-Standing Emergency Departments

8. Universal Health Realty Income Trust's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Universal Health Realty Income Trust passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.84$

Current Price

39.84$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA