Universal Health Realty Income Trust (NYSE: UHT) reported net income of $5.9 million, or $.43 per diluted share, for the three-month period ended June 30, 2026, an increase from $4.5 million, or $.32 per diluted share, in the second quarter of 2025. The improvement was primarily driven by a decrease in interest expense due to a lower average effective borrowing rate and increased income generated at various properties, partially offset by higher average borrowings outstanding. This performance supports the company’s ability to maintain its quarterly dividend of $.75 per share, declared on June 10, 2026, and paid on June 30, 2026.

The reported results included a non-recurring gain on the sale of land of $724,000, or $.06 per diluted share, stemming from the June 2026 sale of one of three land parcels in Chicago, Illinois. After adjusting for this gain, Universal Health Realty Income Trust’s adjusted net income was $5.2 million, or $.37 per diluted share, representing an increase of $691,000, or $.05 per diluted share, compared to the prior year period. The increase consisted of a $422,000 rise in property income and a $269,000 reduction in interest costs.

Funds from operations (FFO), a key metric for real estate investment trusts, totaled $12.5 million, or $.90 per diluted share, in the second quarter of 2026, up from $11.8 million, or $.85 per diluted share, in the second quarter of 2025. The $714,000 increase in FFO was largely attributable to the growth in adjusted net income. For the six-month period ended June 30, 2026, FFO reached $24.8 million, or $1.79 per diluted share, compared to $23.7 million, or $1.71 per diluted share, in the comparable period of 2025.

Financial Highlights

For the six-month period ended June 30, 2026, net income was $10.9 million, or $.79 per diluted share, compared to $9.3 million, or $.67 per diluted share, in the first half of 2025. Adjusted net income for the six-month period was $10.2 million, or $.74 per diluted share, reflecting a $933,000 increase driven by reduced interest expenses and higher property income.

Capital Resources and Development

In April 2026, Universal Health Realty Income Trust entered into the first amendment to its credit agreement, increasing borrowing capacity to $475 million from $425 million. As of June 30, 2026, the company had $109.4 million of available borrowing capacity, net of $365.6 million in outstanding borrowings. The maturity date remains September 30, 2028, with options to extend for two additional six-month periods.

The company is also advancing its development pipeline with the Miller Medical Plaza, an 80,000 square foot medical office building in Palm Beach Gardens, Florida. Construction commenced in February 2026 and is expected to be completed in December 2026, with estimated costs of approximately $34 million. A wholly-owned subsidiary of Universal Health Services (UHS) has executed a 10-year master flex lease agreement for approximately 75% of the rentable space.