Universal Health Realty Income Trust Q2 net income rises on higher property income

Overview

• U.S. healthcare REIT's Q2 net income and adjusted net income rose yr/yr

• Q2 funds from operations increased from prior year

• Company recorded a one-time gain from Chicago land sale in Q2

Outlook

• Company expects Miller Medical Plaza construction to complete in Dec 2026 at $34 mln cost

• Company says additional interest rate increases could unfavorably impact future results

• Company notes industry risks including reduced Medicaid funding, staffing shortages, and supply disruptions

Result Drivers

• PROPERTY INCOME - Co said increased income at various properties contributed $422,000 to higher adjusted net income in Q2

• INTEREST EXPENSE - Decrease in average effective borrowing rate led to $269,000 lower interest expense in Q2

Company press release: ID:nPn4pbmrLa

Key Details

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 $42.00, about 4.2% below its July 24 closing price of $43.83

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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.)