UHT

Shares of Universal Health Realty Income Trust UHT have gained 1.9% since the company reported its earnings for the quarter ended June 30, 2026. This compares to the S&P 500 Index’s 0.9% decline over the same time frame. Over the past month, the stock lost 0.6% compared with the S&P 500’s 2.7% decline. Universal Health Realty reported second-quarter 2026 net income of $5.9 million, or $0.43 per diluted share, compared with $4.5 million, or $0.32 per diluted share, in the prior-year quarter. The results included a $724,000 gain on the sale of land, or $0.06 per diluted share. Excluding this item, adjusted net income was $5.2 million, or $0.37 per diluted share, compared with $4.5 million, or $0.32 per diluted share, in the second quarter of 2025. Revenues increased 0.5% to $24.99 million from $24.87 million a year ago. Funds from operations (FFO), a key REIT performance measure, rose 6.1% to $12.5 million, or $0.90 per diluted share, from $11.8 million, or $0.85 per diluted share, driven primarily by higher adjusted net income. Total revenues for the six months ended June 30, 2026, were up 0.2% to $49.5 million compared with $49.4 million in the first six months of 2025. Universal Health Realty’s revenue performance reflected modest changes across its portfolio. Lease revenues from UHS facilities declined 0.7% to $8.3 million from $8.4 million in the prior-year quarter, while lease revenues from non-related parties decreased 0.6% to $14.5 million from $14.6 million. Other revenues from UHS facilities increased 17.7% to $0.3 million from $0.2 million, while other revenues from non-related parties rose 73.7% to $0.6 million from $0.3 million. Interest income on financing leases with UHS facilities was $1.3 million, down 0.8% year over year. UHT’s operating expenses declined 1.5% to $15.8 million from $16 million in the year-ago period. Other operating expenses decreased 4% to $7.3 million from $7.6 million, partially offset by higher depreciation and amortization expense of $7 million compared with $6.9 million a year ago and increased advisory fees paid to UHS of $1.43 million compared with $1.39 million. Income before equity income from unconsolidated limited liability companies and interest expense improved 4.1% to $9.2 million from $8.8 million. Universal Health Realty Income Trust price-consensus-eps-surprise-chart | Universal Health Realty Income Trust Quote Management attributed the improvement in adjusted net income primarily to higher income generated from various properties and lower interest expense. Universal Health Realty said that adjusted net income increased by $691,000, or $0.05 per diluted share, year over year. Property-related income contributed $422,000 of the improvement, while lower interest expense added $269,000, helped by a decline in the average effective borrowing rate despite higher average borrowings under UHT’s credit agreement. For the first six months of 2026, UHT reported a net income of $10.9 million, or $0.79 per diluted share, compared with $9.3 million, or $0.67 per diluted share, in the comparable period of 2025. Adjusted net income for the six-month period was $10.2 million, or $0.74 per diluted share, compared with $9.3 million, or $0.67 per diluted share. FFO increased 4.4% to $24.8 million, or $1.79 per diluted share, from $23.7 million, or $1.71 per diluted share, supported by higher adjusted earnings and increased depreciation and amortization expense. Universal Health Realty continued to maintain a diversified healthcare real estate portfolio. The company invests in healthcare and human-service-related facilities, including acute care hospitals, behavioral healthcare hospitals, specialty facilities, medical office buildings (MOBs), free-standing emergency departments and childcare centers. As of June 30, 2026, UHT had investments or commitments in 77 properties across 21 states. UHT declared and paid a second-quarter dividend of $0.75 per share, totaling $10.4 million. This compared with a dividend paid per share of $0.74 in the year-ago quarter. UHT expanded its credit agreement capacity in April 2026, increasing borrowing capacity to $475 million from $425 million previously. The credit facility maturity remains Sept. 30, 2028, with options for two additional six-month extensions. As of June 30, 2026, Universal Health Realty had $109.4 million of available borrowing capacity after accounting for $365.6 million in outstanding borrowings. Net real estate investments and financing receivables totaled $495.9 million at quarter-end, compared with $492.2 million at the end of 2025. During the quarter, Universal Health Realty sold one of its three land parcels in Chicago, IL, generating cash proceeds of $746,000 after closing and related costs. The transaction represented approximately 14% of the total acreage and resulted in a gain of about $724,000 included in second-quarter and first-half 2026 results. UHT also continued development of the Miller Medical Plaza, an 80,000-square-foot MOB in Palm Beach Gardens, FL. Construction began in February 2026 and is expected to be completed in December 2026. The project cost is estimated to be approximately $34 million, and a UHS subsidiary has entered into a 10-year master flex lease agreement covering about 75% of rentable space at completion, subject to reductions as third-party leases are executed. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Realty Income Trust (UHT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Consolidated Results of Operations - Three-Month Periods Ended June 30, 2026 and 2025: KING OF PRUSSIA, Pa., July 27, 2026 /PRNewswire/ -- Universal Health Realty Income Trust (NYSE: UHT) announced today that for the three-month period ended June 30, 2026, net income was $5.9 million, or $.43 per diluted share, as compared to $4.5 million, or $.32 per diluted share, during the second quarter of 2025. Our financial results for the three-month period ended June 30, 2026 included a gain on the sale of land of $724,000, or $.06 per diluted share, as discussed below. As reflected on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), after adjusting our reported results for this gain, our adjusted net income was $5.2 million, or $.37 per diluted share during the three-month period ended June 30, 2026. The increase in our adjusted net income of $691,000, or $.05 per diluted share, during the second quarter of 2026, as compared to the second quarter of 2025, consisted of the following: (i) a net aggregate increase of $422,000, or $.03 per diluted share, resulting from increased income generated at various properties; and (ii) an increase of $269,000, or $.02 per diluted share, resulting from a decrease in interest expense due to a decrease in our average effective borrowing rate (which gives effect to various interest rate swap agreements), partially offset by an increase in our average borrowings outstanding pursuant to our credit agreement. As calculated on the attached Supplemental Schedule, our funds from operations ("FFO") were $12.5 million, or $.90 per diluted share, during the second quarter of 2026, as compared to $11.8 million, or $.85 per diluted share during the second quarter of 2025. The increase of $714,000, or $.05 per diluted share, was due primarily to the above-mentioned $691,000, or $.05 per diluted share, increase in our adjusted net income during the second quarter of 2026, as compared to the second quarter of 2025. Consolidated Results of Operations - Six-Month Periods Ended June 30, 2026 and 2025: For the six-month period ended June 30, 2026, net income was $10.9 million, or $.79 per diluted share, as compared to $9.3 million, or $.67 per diluted share, during the comparable period of 2025. As discussed above, our financial results for the six-month period ended June 30, 2026 included a gain on the sale of land of $724,000. As reflected on the attached Supplemental Schedule, after adjusting our reported results for this gain, our adjusted net income was $10.2 million, or $.74 per diluted share during the six-month period ended June 30, 2026. The increase in our adjusted net income of $933,000, or $.07 per diluted share, during the first six months of 2026, as compared to the comparable period of 2025, consisted of the following: (i) an increase of $486,000, or $.04 per diluted share, resulting from a decrease in interest expense due primarily to a decrease in our average effective borrowing rate; and (ii) a net aggregate increase of $447,000, or $.03 per diluted share, resulting from increased income generated at various properties. As calculated on the attached Supplemental Schedule, our FFO were $24.8 million, or $1.79 per diluted share, during the first six months of 2026, as compared to $23.7 million, or $1.71 per diluted share during the comparable period of 2025. The increase of approximately $1.1 million, or $.08 per diluted share, was due to the above-mentioned $933,000, or $.07 per diluted share, increase in our adjusted net income during the first six months of 2026, as compared to the comparable period of 2025, as well as an increase in depreciation and amortization expense. Dividend Information: The second quarter dividend of $.75 per share, or $10.4 million in the aggregate, was declared on June 10, 2026 and paid on June 30, 2026. Credit Agreement and Capital Resources Information: In April, 2026, as previously disclosed, we entered into the first amendment to the second amended and restated credit agreement which increased the borrowing capacity to $475 million from $425 million previously. The maturity date, which was unchanged, is September 30, 2028, and we have the option to extend the maturity date for two additional six-month periods. As of June 30, 2026, pursuant to the terms of our $475 million credit agreement, we had $109.4 million of available borrowing capacity, net of $365.6 million of outstanding borrowings. Sale of Land: In June 2026, we sold one of our three parcels of land located in Chicago, Illinois, for cash proceeds of $746,000, net of closing and related costs. The parcel sold represented approximately 14% of the total acreage. This sale generated a gain of approximately $724,000, which is included in our consolidated statements of income for the three and six-month periods ended June 30, 2026. Miller Medical Plaza: In October 2025, we entered into a ground lease with a wholly-owned subsidiary of UHS with the intent to develop, construct and own the real property of the Miller Medical Plaza, an 80,000 square foot MOB located in Palm Beach Gardens, Florida. This MOB will be located on the campus of the Alan B. Miller Medical Center, a newly constructed acute care hospital owned and operated by a wholly-owned subsidiary of UHS, which was completed and opened in May, 2026. Construction of this MOB, for which we have engaged a wholly-owned subsidiary of UHS to act as project manager, commenced in February, 2026, and is expected to be completed in December, 2026. The cost of the MOB is estimated to be approximately $34 million. A wholly-owned subsidiary of UHS has executed a 10-year master flex lease agreement, which commences when building is completed and is subject to reduction based on the execution of third-party leases, for approximately 75% of the rentable square feet of the MOB. General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures: Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-seven properties located in twenty-one states. This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, as well as the operations and financial results of each of our tenants, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7 - Forward-Looking Statements in our Form 10-K for the year ended December 31, 2025, and in Item 2 - Forward Looking Statements and Certain Risk Factors in our Form 10-Q for the quarter ended March 31, 2026), may cause the results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. Many of the factors that could affect our future results are beyond our control or ability to predict. Future operations and financial results of our tenants, and in turn ours, could be materially impacted by various developments including, but not limited to, potential significant reductions in federal funding for state Medicaid programs, and/or other potential changes, which would likely result in reduced Medicaid payments to the operators of our facilities; decreases in staffing availability and related increases to wage expense experienced by our tenants resulting from the shortage of nurses and other clinical staff and support personnel; the impact of government and administrative regulation of the health care industry; declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions (including increases in uninsured and underinsured patients as the result of, among other things, the December 31, 2025 expiration of the enhanced subsidies formerly granted in connection with the purchase of coverage through insurance exchanges as provided for by the Patient Protection and Affordable Care Act, business closings and layoffs); potential cost increases and disruptions related to supplies and building materials resulting from changes in laws or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from where the products or materials are made; and potential increases to other expenditures. In addition, the increase in interest rates during the past few years has substantially increased our borrowings costs and reduced our ability to access the capital markets on favorable terms. Additional increases in interest rates could have a significant unfavorable impact on our future results of operations and the resulting effect on the capital markets could adversely affect our ability to carry out our strategy. We believe that, if and when applicable, adjusted net income and adjusted net income per diluted share (as reflected on the Supplemental Schedule), which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of material items that are non-recurring or non-operational in nature including items such as, but not limited to, gains or losses on transactions. Funds from operations ("FFO") is a widely recognized measure of performance for Real Estate Investment Trusts ("REITs"). We believe that FFO and FFO per diluted share, which are non-GAAP financial measures, are helpful to our investors as measures of our operating performance. We compute FFO, as reflected on the attached Supplemental Schedules, in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we interpret the definition. FFO adjusts for the effects of certain items, such as gains or losses on transactions that occurred during the periods presented. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income determined in accordance with GAAP. In addition, FFO should not be used as: (i) an indication of our financial performance determined in accordance with GAAP; (ii) an alternative to cash flow from operating activities determined in accordance with GAAP; (iii) a measure of our liquidity, or; (iv) an indicator of funds available for our cash needs, including our ability to make cash distributions to shareholders. A reconciliation of our reported net income to FFO is reflected on the Supplemental Schedules included below. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2025, and our Report on Form 10-Q for the quarter ended March 31, 2026. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance. View original content:https://www.prnewswire.com/news-releases/universal-health-realty-income-trust-reports-financial-results-for-the-three-and-six-month-periods-ended-june-30-2026-302835591.html

Shares of Universal Health Realty Income Trust UHT have edged lower since the release of its first-quarter 2026 results, slipping 0.34% compared with a 0.30% decline in the S&P 500 over the same period. Over the past month, the stock has modestly gained 0.4%, but significantly underperformed the broader market, which advanced 9.9%. For the quarter ended March 31, 2026, the healthcare-focused real estate investment trust (REIT) reported net income of $5 million, or $0.36 per diluted share, up 5.1% from $4.8 million, or $0.34 per share, in the year-ago period. Funds from operations (FFO), a key metric for REITs, rose 2.8% to $12.3 million, or $0.88 per diluted share, from $11.9 million, or $0.86 per share, in the prior-year quarter. Total revenues remained essentially flat at $24.53 million compared with $24.55 million a year earlier, with minor shifts across components. Lease revenue from Universal Health Services (UHS)-related facilities increased 0.7% to $8.4 million from $8.3 million (aided in part by higher bonus rental income from McAllen Medical Center), while lease revenue from non-related parties declined 0.9% to $14.2 million from $14.3 million. Other revenue streams and interest income on financing leases showed minimal changes year over year. Expense trends were relatively stable, with total operating expenses increasing 0.4% to $15.6 million from $15.5 million in the prior-year period. Depreciation and amortization expenses rose 1.6%, while advisory fees paid to UHS also ticked 2.9% higher. However, other operating expenses declined 1.2%. Notably, equity income from unconsolidated limited liability companies increased 24.8% to $514,000 from $412,000, contributing positively to overall results. Meanwhile, net interest expense declined 4.6% to $4.5 million from $4.7 million, reflecting a lower average effective borrowing rate, which provided a meaningful tailwind to profitability. Universal Health Realty Income Trust price-consensus-eps-surprise-chart | Universal Health Realty Income Trust Quote The primary driver of earnings growth in the quarter was reduced interest expense, which contributed approximately $217,000 of the $242,000 increase in net income. This improvement was largely attributable to a lower effective borrowing rate, aided by interest rate swap agreements. Additionally, incremental income from certain properties provided a smaller boost. Despite these gains, revenue growth remained constrained, indicating limited top-line expansion and highlighting the REIT’s reliance on cost management and financing efficiencies to support earnings growth. Management highlighted the stability of its portfolio, which includes investments in 77 healthcare and human-service-related properties across 21 states. However, Universal Health Realty also pointed to several macroeconomic and industry risks that could affect future performance. These include potential reductions in Medicaid funding, staffing shortages in healthcare facilities and broader regulatory pressures. Rising interest rates remain a concern, as they have already increased borrowing costs and could further limit access to capital markets on favorable terms. From a balance sheet perspective, UHT reported total assets of approximately $563.8 million as of March 31, 2026, compared with $564.9 million at year-end 2025. Outstanding borrowings under its credit agreement stood at $359.5 million, indicating continued reliance on debt financing to support operations and growth initiatives. Universal Health Realty also continues to return capital to shareholders, declaring a quarterly dividend of $0.745 per share, up from $0.735 in the prior-year period. This reflects ongoing confidence in cash flow stability and the REIT’s income-generating capacity. Universal Health Realty did not provide any financial guidance. However, forward-looking statements emphasized uncertainty tied to macroeconomic conditions, healthcare policy changes and tenant performance. Management underscored that future results could be materially impacted by these factors, suggesting a cautious outlook. During the quarter and shortly thereafter, UHT took steps to enhance its financial flexibility and expand its development pipeline. In April 2026, the company amended its credit agreement to increase borrowing capacity to $475 million from $425 million, while maintaining a maturity date of Sept. 30, 2028, with extension options. Additionally, Universal Health Realty advanced its Miller Medical Plaza project in Palm Beach Gardens, FL. Construction of the 80,000-square-foot medical office building began in February 2026 and is expected to be completed in the fourth quarter of 2026, with an estimated cost of $34 million. A subsidiary of UHS has committed to a 10-year lease covering approximately 75% of the rentable space, providing visibility into future rental income once the project is completed. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Realty Income Trust (UHT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Consolidated Results of Operations - Three-Month Periods Ended March 31, 2026 and 2025: KING OF PRUSSIA, Pa., April 27, 2026 /PRNewswire/ -- Universal Health Realty Income Trust (NYSE:UHT) announced today that for the three-month period ended March 31, 2026, net income was $5.0 million, or $.36 per diluted share, as compared to $4.8 million, or $.34 per diluted share, during the first quarter of 2025. The increase in our net income of $242,000, or $.02 per diluted share, during the three-month period ended March 31, 2026, as compared to the first quarter of 2025, consisted of the following: (i) an increase of $217,000, or $.02 per diluted share, resulting from a decrease in interest expense due primarily to a decrease in our average effective borrowing rate (which gives effect to various interest rate swap agreements), and; (ii) a net aggregate increase of $25,000 resulting from increased income generated at various properties. As calculated on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our funds from operations ("FFO") were $12.3 million, or $.88 per diluted share, during the first quarter of 2026, as compared to $11.9 million, or $.86 per diluted share during the first quarter of 2025. The increase of $336,000, or $.02 per diluted share, was due primarily to the above-mentioned increase in our net income during the first quarter of 2026, as compared to the first quarter of 2025, as well as an increase in depreciation and amortization expense. Dividend Information: The first quarter dividend of $.745 per share, or $10.3 million in the aggregate, was declared on March 11, 2026 and paid on March 31, 2026. Credit Agreement Amendment and Capital Resources Information: In April, 2026, and as previously disclosed on Form 8-K as filed with the Securities and Exchange Commission on April 24, 2026, we entered into the first amendment to the second amended and restated credit agreement which increased the borrowing capacity to $475 million from $425 million previously. The maturity date, which was unchanged, is September 30, 2028, and we have the option to extend the maturity date for two additional six-month periods. As of March 31, 2026, we had $359.5 million of borrowings outstanding pursuant to the terms of our credit agreement. Miller Medical Plaza: In October 2025, we entered into a ground lease with a wholly-owned subsidiary of UHS with the intent to develop, construct and own the real property of the Miller Medical Plaza, an 80,000 square foot MOB located in Palm Beach Gardens, Florida. This MOB will be located on the campus of the Alan B. Miller Medical Center, a newly constructed acute care hospital owned and operated by a wholly-owned subsidiary of UHS, which is scheduled to be completed and opened during the second quarter of 2026. Construction of this MOB, for which we have engaged a wholly-owned subsidiary of UHS to act as project manager, commenced in February 2026, and is expected to be completed during the fourth quarter of 2026. The cost of the MOB is estimated to be approximately $34 million. A wholly-owned subsidiary of UHS has executed a 10-year master flex lease agreement, which commences when building is completed and is subject to reduction based on the execution of third-party leases, for approximately 75% of the rentable square feet of the MOB. General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures: Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-seven properties located in twenty-one states. This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, as well as the operations and financial results of each of our tenants, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7 - Forward-Looking Statements in our Form 10-K for the year ended December 31, 2025), may cause the results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. Many of the factors that could affect our future results are beyond our control or ability to predict. Future operations and financial results of our tenants, and in turn ours, could be materially impacted by various developments including, but not limited to, potential significant reductions in federal funding for state Medicaid programs, and/or other potential changes, which would likely result in reduced Medicaid payments to the operators of our facilities; decreases in staffing availability and related increases to wage expense experienced by our tenants resulting from the shortage of nurses and other clinical staff and support personnel; the impact of government and administrative regulation of the health care industry; declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions (including increases in uninsured and underinsured patients as the result of, among other things, the December 31, 2025 expiration of the enhanced subsidies formerly granted in connection with the purchase of coverage through insurance exchanges as provided for by the Patient Protection and Affordable Care Act, business closings and layoffs); potential cost increases and disruptions related to supplies and building materials resulting from changes in laws or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from where the products or materials are made; and potential increases to other expenditures. In addition, the increase in interest rates during the past few years has substantially increased our borrowings costs and reduced our ability to access the capital markets on favorable terms. Additional increases in interest rates could have a significant unfavorable impact on our future results of operations and the resulting effect on the capital markets could adversely affect our ability to carry out our strategy. We believe that, if and when applicable, adjusted net income and adjusted net income per diluted share (as reflected on the Supplemental Schedule), which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of material items that are non-recurring or non-operational in nature including items such as, but not limited to, gains or losses on transactions. Funds from operations ("FFO") is a widely recognized measure of performance for Real Estate Investment Trusts ("REITs"). We believe that FFO and FFO per diluted share, which are non-GAAP financial measures, are helpful to our investors as measures of our operating performance. We compute FFO, as reflected on the attached Supplemental Schedules, in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we interpret the definition. FFO adjusts for the effects of certain items, such as gains or losses on transactions that occurred during the periods presented. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income determined in accordance with GAAP. In addition, FFO should not be used as: (i) an indication of our financial performance determined in accordance with GAAP; (ii) an alternative to cash flow from operating activities determined in accordance with GAAP; (iii) a measure of our liquidity, or; (iv) an indicator of funds available for our cash needs, including our ability to make cash distributions to shareholders. A reconciliation of our reported net income to FFO is reflected on the Supplemental Schedules included below. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2025. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance. View original content:https://www.prnewswire.com/news-releases/universal-health-realty-income-trust-reports-2026-first-quarter-financial-results-302754593.html

Shares of Universal Health Realty Income Trust UHT have gained 0.1% since the company reported its earnings for the quarter ended Dec. 31, 2025, against the S&P 500 Index’s 0.1% decline over the same time frame. Over the past month, however, the stock has outperformed the broader market, rising 8.2% against the S&P 500’s 1.2% decline. For the fourth quarter of 2025 ended Dec. 31, 2025, net income declined 7.2% to $4.3 million, or $0.31 per diluted share, from $4.7 million, or $0.34 per diluted share, in the year-ago quarter. The decrease in quarterly net income reflected lower aggregate income at certain properties, partially offset by reduced interest expense due primarily to a lower average effective borrowing rate. Total revenues for the quarter edged down 0.7% to $24.5 million from $24.6 million a year earlier, driven by softer lease revenue from non-related parties and the impact of a vacated medical office building in Amarillo, TX. For the full year, net income fell 8.4% to $17.6 million, or $1.27 per diluted share, from $19.2 million, or $1.39 per diluted share, in 2024. The decline was attributed to lower property-level income, including approximately $900,000 of nonrecurring depreciation recorded in the third quarter of 2025, as well as the absence of a prior-year property tax reduction. Annual revenues increased 0.2% to $99.2 million from $99 million, supported by higher other revenue from non-related parties and steady lease income from Universal Health Services (“UHS”) facilities. Funds from operations (FFO), a key REIT metric, were essentially flat. Fourth-quarter 2025 FFO totaled $11.7 million, or $0.85 per diluted share, compared with $11.8 million, or $0.85 per share, in the prior-year period. For the year, FFO declined 0.4% to $47.7 million, or $3.44 per diluted share, from $47.9 million, or $3.46 per share. Depreciation and amortization expense rose in both the quarter and full year. Quarterly depreciation increased 4.7% year over year to $7.1 million from $6.8 million, while full-year depreciation climbed 5.2% to $28.9 million from $27.4 million. Advisory fees to UHS also rose 2.7% and 2.1%, respectively, in the quarter and full year. Interest expense declined 5.5% to $4.6 million in fourth-quarter 2025 from $4.9 million in the prior-year quarter, reflecting the benefit of interest rate swap agreements and a lower effective borrowing rate. On the balance sheet, net real estate investments declined to $410 million as of Dec. 31, 2025, from $425.9 million a year earlier. Total assets decreased to $564.9 million from $580.9 million during the same period. Line of credit borrowings increased to $356.2 million from $348.9 million, reducing available capacity under the $425 million credit agreement to $68.8 million at year-end. UHT declared a fourth-quarter 2025 dividend of $0.745 per share, totaling $10.3 million, up from $0.735 per share in the prior-year quarter. Universal Health Realty Income Trust price-consensus-eps-surprise-chart | Universal Health Realty Income Trust Quote Management attributed the quarterly earnings decline primarily to lower income from certain properties, most notably a medical office building in Amarillo, TX, vacated following lease expirations in the fourth quarter of 2025. The impact was partially offset by lower interest expense resulting from decreases in the average effective borrowing rate. For the year, nonrecurring depreciation expense recorded in the third quarter and the absence of a 2024 property tax reduction in Chicago weighed on comparisons. In October 2025, Universal Health Realty entered into a ground lease to develop Palm Beach Gardens Medical Plaza I, an 80,000-square-foot medical office building in Florida. Construction began in February 2026 and is expected to be completed in the fourth quarter of 2026. The project is estimated to cost approximately $34 million, and a wholly owned UHS subsidiary has executed a 10-year master flex lease for about 75% of the rentable space, subject to reductions as third-party leases are signed. During the quarter, no acquisitions or divestitures were announced. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Realty Income Trust (UHT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Consolidated Results of Operations - Three-Month Periods Ended December 31, 2025 and 2024: KING OF PRUSSIA, Pa., Feb. 25, 2026 /PRNewswire/ -- Universal Health Realty Income Trust (NYSE:UHT) announced today that for the three-month period ended December 31, 2025, net income was $4.3 million, or $.31 per diluted share, as compared to $4.7 million, or $.34 per diluted share, during the fourth quarter of 2024. The decrease in our net income of $337,000, or $.03 per diluted share, during the three-month period ended December 31, 2025, as compared to the fourth quarter of 2024, included the following: (i) a decrease of $610,000, or $.04 per diluted share, resulting primarily from a decrease in the net aggregate income generated at various properties, partially offset by; (ii) an increase of $273,000, or $.02 per diluted share, resulting from a decrease in interest expense due primarily to decreases in our average effective borrowing rate (which gives effect to various interest rate swap agreements). The decrease in the net aggregate income during the fourth quarter of 2025, as compared to the comparable quarter of the prior year, was due primarily to decreased income generated at a medical office building ("MOB") located in Amarillo, Texas. The building was vacated during the fourth quarter of 2025 upon the lease expirations of the two former tenants. We are currently marketing the building to other potential tenants. As calculated on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our funds from operations ("FFO"), which excludes depreciation and amortization expense, decreased slightly to $11.74 million, or $.85 per diluted share, during the fourth quarter of 2025, as compared to $11.76 million, or $.85 per diluted share, during the fourth quarter of 2024. Consolidated Results of Operations - Twelve-Month Periods Ended December 31, 2025 and 2024: For the twelve-month period ended December 31, 2025, net income was $17.6 million, or $1.27 per diluted share, as compared to $19.2 million, or $1.39 per diluted share, during the full year of 2024. The decrease in our net income of $1.6 million, or $.12 per diluted share, during the year ended December 31, 2025, as compared to the full year of 2024, consisted of the following: (i) a decrease of $1.0 million, or $.08 per diluted share, resulting from an aggregate net decrease in the income generated at various properties, including nonrecurring depreciation expense of approximately $900,000 (recorded during the third quarter of 2025), and; (ii) a decrease of $610,000, or $.04 per diluted share, related to a property tax reduction recorded during 2024 at our property located in Chicago, Illinois. As calculated on the attached Supplemental Schedule, our FFO, which excludes depreciation and amortization expense, decreased by $184,000, or $.02 per diluted share, to $47.7 million, or $3.44 per diluted share, during the year ended December 31, 2025, as compared to $47.9 million, or $3.46 per diluted share during the comparable period of 2024. Dividend Information: The fourth quarter dividend of $.745 per share, or $10.3 million in the aggregate, was declared on December 22, 2025 and paid on December 31, 2025. Capital Resources Information: As of December 31, 2025, pursuant the terms of our $425 million credit agreement which is scheduled to expire on September 30, 2028, we had $68.8 million of available borrowing capacity, net of $356.2 million of borrowings. We have the option to extend the credit agreement for up to two additional six-month periods. Palm Beach Gardens Medical Plaza I: In October 2025, we entered into a ground lease with a wholly-owned subsidiary of UHS with the intent to develop, construct and own the real property of Palm Beach Gardens Medical Plaza I, an 80,000 square foot MOB located in Palm Beach Gardens, Florida. This MOB will be located on the campus of the Alan B. Miller Medical Center, a newly constructed acute care hospital owned and operated by a wholly-owned subsidiary of UHS, which is scheduled to be completed and opened during the second quarter of 2026. Construction of this MOB, for which we have engaged a wholly-owned subsidiary of UHS to act as project manager, recently commenced in February and is expected to be completed during the fourth quarter of 2026. The cost of the MOB is estimated to be approximately $34 million. A wholly-owned subsidiary of UHS has executed a 10-year master flex lease agreement, which is subject to reduction based on the execution of third-party leases, for approximately 75% of the rentable square feet of the MOB. General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures: Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-seven properties located in twenty-one states. This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, as well as the operations and financial results of each of our tenants, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7 - Forward-Looking Statements in our Form 10-K for the year ended December 31, 2025), may cause the results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. Many of the factors that could affect our future results are beyond our control or ability to predict. Future operations and financial results of our tenants, and in turn ours, could be materially impacted by various developments including, but not limited to, potential significant reductions in federal funding for state Medicaid programs, and/or other potential changes, which would likely result in reduced Medicaid payments to the operators of our facilities; decreases in staffing availability and related increases to wage expense experienced by our tenants resulting from the shortage of nurses and other clinical staff and support personnel; the impact of government and administrative regulation of the health care industry; declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions (including increases in uninsured and underinsured patients as the result of, among other things, the December 31, 2025 expiration of the enhanced subsidies formerly granted in connection with the purchase of coverage through insurance exchanges as provided for by the Patient Protection and Affordable Care Act, business closings and layoffs); potential cost increases and disruptions related to supplies and building materials resulting from changes in laws or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from where the products or materials are made; and potential increases to other expenditures. In addition, the increase in interest rates during the past few years has substantially increased our borrowings costs and reduced our ability to access the capital markets on favorable terms. Additional increases in interest rates could have a significant unfavorable impact on our future results of operations and the resulting effect on the capital markets could adversely affect our ability to carry out our strategy. We believe that, if and when applicable, adjusted net income and adjusted net income per diluted share (as reflected on the Supplemental Schedule), which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of material items that are non-recurring or non-operational in nature including items such as, but not limited to, gains or losses on transactions. Funds from operations ("FFO") is a widely recognized measure of performance for Real Estate Investment Trusts ("REITs"). We believe that FFO and FFO per diluted share, which are non-GAAP financial measures, are helpful to our investors as measures of our operating performance. We compute FFO, as reflected on the attached Supplemental Schedules, in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we interpret the definition. FFO adjusts for the effects of certain items, such as gains or losses on transactions that occurred during the periods presented. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income determined in accordance with GAAP. In addition, FFO should not be used as: (i) an indication of our financial performance determined in accordance with GAAP; (ii) an alternative to cash flow from operating activities determined in accordance with GAAP; (iii) a measure of our liquidity, or; (iv) an indicator of funds available for our cash needs, including our ability to make cash distributions to shareholders. A reconciliation of our reported net income to FFO is reflected on the Supplemental Schedules included below. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2025. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance. View original content:https://www.prnewswire.com/news-releases/universal-health-realty-income-trust-reports-financial-results-for-the-three-and-twelve-month-periods-ended-december-31-2025-302697500.html

Shares of Universal Health Realty Income Trust UHT have gained 3.3% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares with the S&P 500 Index’s 0.7% rise during the same period. However, over the past month, the stock declined 3.6%, underperforming the S&P 500’s 2.1% growth. Universal Health Realty’s third-quarter 2025 results were largely stable compared with the year-ago quarter. Net income came in at $4 million (or $0.29 per diluted share) compared with $3.9 million (or $0.29 per diluted share), up 0.5% year over year. The quarter’s performance included a $275,000 gain (or $0.02 per share) from a one-time settlement related to one of its medical office buildings, which offset a $256,000 aggregate decline (or $0.02 per share) primarily from reduced property-level income and non-recurring depreciation charges of approximately $900,000. Funds from operations (FFO), a key performance metric for real estate investment trusts, rose 8% year over year to $12.2 million, or $0.88 per diluted share, compared with $11.3 million, or $0.82 per share, in the prior-year quarter. For the nine months ended Sept. 30, 2025, net income totaled $13.3 million, or $0.96 per diluted share, down 8.8% from $14.6 million, or $1.05 per diluted share, a year earlier. The year-to-date decline reflected lower property-level income, the absence of a property tax reduction recorded in 2024, and higher interest expense due to increased borrowings. FFO for the nine-month period decreased 0.5% to $35.9 million, or $2.59 per share, from $36.1 million, or $2.61 per share, last year. Total revenues for the third quarter reached $25.3 million, up 3.3% from $24.5 million in the prior year. Growth was mainly driven by higher lease revenues from non-related parties, which rose 3% to $14.8 million from $14.3 million. Lease revenues from facilities leased to Universal Health Services (UHS), UHT’s largest tenant, increased 1.4% to $8.4 million from $8.2 million. Bonus rental income from the McAllen Medical Center facility rose 16.9% to $895,000 from $765,000 a year ago. Other revenues, including those from both UHS and non-UHS sources, totaled $810,000, up 48.1% from $547,000 in the same quarter last year. Interest income from UHS-related financing leases decreased 0.7% year over year to $1.3 million from $1.4 million. However, total expenses also increased 5.6%, primarily due to higher depreciation and amortization expenses, which climbed 12.8% year over year to $7.9 million from $7 million. Income before interest and equity in unconsolidated entities was $8.4 million, 1.1% lower than $8.5 million in the previous year, while equity in income from unconsolidated LLCs improved 46% to $438,000 from $300,000. On the balance sheet, as of Sept. 30, 2025, total assets stood at $568 million, down from $580.9 million as of Dec. 31, 2024, reflecting a slight reduction in net real estate investments to $493.9 million from $508.7 million. Total liabilities rose to $409.5 million as of Sept. 30, 2025, from $401.3 million as of Dec. 31, 2024, mainly on account of higher borrowings under the credit facility. Equity declined to $158.6 million from $179.5 million due to cumulative dividends exceeding retained income. Universal Health Realty Income Trust price-consensus-eps-surprise-chart | Universal Health Realty Income Trust Quote Management attributed the steady quarterly performance to stable rental income from its healthcare facilities portfolio and effective management of operating expenses. The quarter’s net income benefited from a one-time settlement gain but was weighed down by non-recurring depreciation expenses. Rising interest rates have also impacted borrowing costs, leading to a slight uptick in interest expense compared to the prior year. Universal Health Realty continues to face challenges from macroeconomic factors affecting its tenants, including rising wage expenses due to staffing shortages in healthcare, potential reductions in federal Medicaid funding and increased costs for construction materials. Management noted that sustained high interest rates have materially increased borrowing costs and may limit favorable capital market access going forward. As of the quarter’s end, UHT had $67.9 million of available borrowing capacity under its $425 million credit facility, which matures in September 2028. The company can extend the facility for up to two additional six-month periods. Line-of-credit borrowings stood at $357.1 million at the end of the quarter. UHT maintained its dividend payout, declaring a third-quarter dividend of $0.74 per share, up from $0.73 per share last year, which was paid on Sept. 30, 2025. Universal Health Realty did not provide specific forward earnings or FFO guidance for upcoming quarters. However, it reaffirmed its commitment to maintaining a stable dividend and prudent balance-sheet management amid a challenging interest rate environment. In October 2025, Universal Health Realty entered into a ground lease agreement with a wholly-owned subsidiary of UHS to develop and own Palm Beach Gardens Medical Plaza I, an 80,000-square-foot medical office building in Palm Beach Gardens, FL. Construction, expected to begin in November 2025, will be managed by a UHS subsidiary, with total costs estimated at approximately $34 million. A 10-year master lease covering about 75% of the building’s rentable area has already been executed, providing a visible source of future rental income. The facility will be located on the campus of the Alan B. Miller Medical Center, an acute care hospital scheduled for completion in the third quarter of 2026. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Realty Income Trust (UHT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Consolidated Results of Operations - Three-Month Periods Ended September 30, 2025 and 2024: KING OF PRUSSIA, Pa., Oct. 27, 2025 /PRNewswire/ -- Universal Health Realty Income Trust (NYSE:UHT) announced today that for the three-month period ended September 30, 2025, net income was $4.0 million, or $.29 per diluted share, as compared to $4.0 million, or $.29 per diluted share, during the third quarter of 2024. Our net income during the third quarter of 2025, as compared to third quarter of 2024, included the following: (i) an increase of $275,000, or $.02 per diluted share, resulting from a one-time settlement and release agreement executed during the third quarter of 2025 in connection with one of our medical office buildings, and; (ii) an other combined net decrease of $256,000, or $.02 per diluted share, resulting primarily from a decrease in the net aggregate income generated at various properties, including approximately $900,000 of nonrecurring depreciation expense recorded during the third quarter of 2025. As calculated on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our funds from operations ("FFO"), which excludes depreciation and amortization expense, increased by $908,000, or $.06 per diluted, share to $12.2 million, or $.88 per diluted share, during the third quarter of 2025, as compared to $11.3 million, or $.82 per diluted share, during the third quarter of 2024. Consolidated Results of Operations - Nine-Month Periods Ended September 30, 2025 and 2024: For the nine-month period ended September 30, 2025, net income was $13.3 million, or $.96 per diluted share, as compared to $14.6 million, or $1.05 per diluted share, during the comparable period of 2024. The decrease in our net income of $1.3 million, or $.09 per diluted share, during the first nine months of 2025, as compared to the comparable period of 2024, consisted of the following: (i) a decrease of $730,000, or $.05 per diluted share, resulting from an aggregate net decrease in the income generated at various properties, including the above-mentioned nonrecurring depreciation expense of approximately $900,000 recorded during the third quarter of 2025; (ii) a decrease of $563,000, or $.04 per diluted share, related to a property tax reduction recorded during the first nine months of 2024 at our property located in Chicago, Illinois, (iii) an increase of $275,000, or $.02 per diluted share, resulting from the above-mentioned, one-time settlement and release agreement executed during the third quarter of 2025, and; (iv) a decrease of $282,000, or $.02 per diluted share, resulting from an increase in interest expense due primarily to an increase in our average borrowings outstanding pursuant to our credit agreement. As calculated on the attached Supplemental Schedule, our FFO, which excludes depreciation and amortization expense, decreased by $166,000, or $.02 per diluted share, to $35.9 million, or $2.59 per diluted share, during the first nine months of 2025, as compared to $36.1 million, or $2.61 per diluted share during the comparable period of 2024. Dividend Information: The third quarter dividend of $.74 per share, or $10.3 million in the aggregate, was declared on September 22, 2025 and paid on September 30, 2025. Capital Resources Information: As of September 30, 2025, pursuant the terms of our $425 million credit agreement which is scheduled to expire on September 30, 2028, we had $67.9 million of available borrowing capacity, net of $357.1 million of borrowings. We have the option to extend the credit agreement for up to two additional six-month periods. Palm Beach Gardens Medical Plaza I: In October 2025, we entered into a ground lease with a wholly-owned subsidiary of UHS with the intent to develop, construct and own the real property of Palm Beach Gardens Medical Plaza I, an 80,000 square foot medical office building ("MOB") located in Palm Beach Gardens, Florida. This MOB will be located on the campus of the Alan B. Miller Medical Center, a newly constructed acute care hospital owned and operated by a wholly-owned subsidiary of UHS, which is scheduled to be completed and opened during the third quarter of 2026. Construction of this MOB, for which we have engaged a wholly-owned subsidiary of UHS to act as project manager, is expected to commence in November, 2025. The cost of the MOB is estimated to be approximately $34 million. A wholly-owned subsidiary of UHS has executed a 10-year master flex lease agreement, which is subject to reduction based on the execution of third-party leases, for approximately 75% of the rentable square feet of the MOB. General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures: Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-seven properties located in twenty-one states. This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, as well as the operations and financial results of each of our tenants, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7 - Forward-Looking Statements in our Form 10-K for the year ended December 31, 2024 and in Item 2 - Forward-Looking Statements and Certain Risk Factors in our Form 10-Q for the quarter ended June 30, 2025), may cause the results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. Many of the factors that could affect our future results are beyond our control or ability to predict. Future operations and financial results of our tenants, and in turn ours, could be materially impacted by various developments including, but not limited to, potential significant reductions in federal funding for state Medicaid programs, and/or other potential changes, which would likely result in reduced Medicaid payments to the operators of our facilities; decreases in staffing availability and related increases to wage expense experienced by our tenants resulting from the shortage of nurses and other clinical staff and support personnel; the impact of government and administrative regulation of the health care industry; declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions (including increases in uninsured and underinsured patients as the result of business closings and layoffs); potential cost increases and disruptions related to supplies and building materials resulting from changes in laws or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from where the products or materials are made; and potential increases to other expenditures. In addition, the increase in interest rates during the past few years has substantially increased our borrowings costs and reduced our ability to access the capital markets on favorable terms. Additional increases in interest rates could have a significant unfavorable impact on our future results of operations and the resulting effect on the capital markets could adversely affect our ability to carry out our strategy. We believe that, if and when applicable, adjusted net income and adjusted net income per diluted share (as reflected on the Supplemental Schedule), which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of material items that are non-recurring or non-operational in nature including items such as, but not limited to, gains or losses on transactions. Funds from operations ("FFO") is a widely recognized measure of performance for Real Estate Investment Trusts ("REITs"). We believe that FFO and FFO per diluted share, which are non-GAAP financial measures, are helpful to our investors as measures of our operating performance. We compute FFO, as reflected on the attached Supplemental Schedules, in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we interpret the definition. FFO adjusts for the effects of certain items, such as gains or losses on transactions that occurred during the periods presented. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income determined in accordance with GAAP. In addition, FFO should not be used as: (i) an indication of our financial performance determined in accordance with GAAP; (ii) an alternative to cash flow from operating activities determined in accordance with GAAP; (iii) a measure of our liquidity, or; (iv) an indicator of funds available for our cash needs, including our ability to make cash distributions to shareholders. A reconciliation of our reported net income to FFO is reflected on the Supplemental Schedules included below. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2024 and our Report on Form 10-Q for the quarter ended June 30, 2025. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance. View original content:https://www.prnewswire.com/news-releases/universal-health-realty-income-trust-reports-financial-results-for-the-three-and-nine-month-periods-ended-september-30-2025-302595708.html