Universal Health Realty Income Trust (UHR) reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a net income of $4.0 million for the quarter, consistent with the same period in 2024. For the nine-month period, net income decreased to $13.3 million from $14.6 million in the prior year. The Trust's revenues increased by $808,000 to $25.3 million for the third quarter, driven by a one-time settlement and an increase in bonus rental revenue. For the nine-month period, revenues rose to $74.7 million, up from $74.4 million, primarily due to similar factors.
In terms of expenses, UHR reported total operating expenses of $16.9 million for the third quarter, slightly higher than the $16.0 million recorded in the same quarter of 2024. The increase was attributed to higher depreciation and amortization costs, which rose to $7.9 million from $7.0 million year-over-year. Interest expenses remained stable at $4.8 million for both the third quarters of 2025 and 2024, while total liabilities increased to $409.5 million from $401.3 million at the end of 2024.
Strategically, UHR has continued to expand its portfolio, with significant developments including a ground lease for the Palm Beach Gardens Medical Plaza I, a medical office building scheduled for completion in 2026. The Trust also reported investments in four jointly-owned limited liability companies (LLCs), which are accounted for using the equity method. As of September 30, 2025, UHR's investments in these LLCs totaled $20.8 million, up from $13.9 million at the end of 2024.
Operationally, UHR's relationship with Universal Health Services, Inc. (UHS) remains significant, with UHS-related tenants accounting for approximately 39% of consolidated revenues in both the third quarter and the nine-month period. The Trust's advisory agreement with UHS was renewed for 2025, maintaining the same terms as previous years. UHR's total assets decreased to $568.0 million from $580.9 million at the end of 2024, reflecting a reduction in net real estate investments.
Looking ahead, UHR anticipates continued challenges from rising interest rates and potential impacts from legislative changes affecting healthcare funding. The Trust's management remains focused on maintaining compliance with its credit agreements and exploring opportunities for growth through strategic investments and partnerships. The outlook for the remainder of 2025 will depend on market conditions and the performance of its healthcare facilities.
About UNIVERSAL HEALTH REALTY INCOME TRUST
Universal Health Realty Income Trust is a REIT specializing in healthcare real estate, including hospitals, medical office buildings, emergency departments, and childcare centers across the U.S. It leases properties to healthcare operators, primarily subsidiaries of Universal Health Services, Inc., generating rental income. The company focuses on long-term leases, property management, and investments in healthcare-related facilities, benefiting from healthcare industry demand and regulatory frameworks.
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