Universal Health Realty Income Trust reported financial results for the three and nine-month periods ended September 30, 2026. For the third quarter of 2026, the company recorded net income of $4.9 million, or $0.35 per diluted share. This represents an increase of $0.06 per diluted share compared to the same period in 2025, when net income was $4.0 million.
The increase in earnings was attributed to several factors, including a net aggregate increase of $0.06 per diluted share resulting from nonrecurring depreciation expense recorded during the third quarter of 2025. Additionally, a decrease in interest expense due to a lower average effective borrowing rate contributed to the improvement, partially offset by a one-time settlement and release agreement executed in the third quarter of 2025.
For the nine-month period ended September 30, 2026, net income totaled $15.9 million, or $1.14 per diluted share. This is an increase of $0.18 per diluted share compared to the first nine months of 2025, which saw net income of $13.3 million. The 2026 results included a gain on the sale of land of $724,000 recorded during the second quarter of 2026.
On a funds from operations (FFO) basis, which excludes depreciation and amortization, the company reported FFO of $12.3 million, or $0.88 per diluted share, for the third quarter of 2026. For the first nine months of 2026, FFO increased to $37.1 million, or $2.67 per diluted share, compared to $35.9 million, or $2.59 per diluted share, in the prior year.
The company declared a third-quarter dividend of $0.75 per share, totaling $10.4 million, which was paid on September 30, 2026. Regarding capital resources, as of September 30, 2026, the company had $97.3 million of available borrowing capacity under its $475 million credit agreement, with $377.7 million outstanding. The credit agreement is set to mature on September 30, 2028, with an option to extend for two additional six-month periods.
In October 2026, Universal Health Realty sold a parcel of land in Chicago, Illinois, for cash proceeds of $1.96 million, net of closing costs. The company expects this transaction to result in a gain of approximately $1.90 million in the fourth quarter of 2026. Additionally, the company is developing the Miller Medical Plaza, an 80,000 square foot medical office building in Palm Beach Gardens, Florida, with an estimated cost of $34 million. Construction commenced in February 2026 and is expected to be completed in December 2026.
