Executive Summary

Q3 2025 delivered stable GAAP EPS at $0.29 (flat year-over-year), modest top-line outperformance vs consensus, and improved FFO per share to $0.88; revenue was helped by higher non-related party lease revenue and UHS bonus rent, while EPS was tempered by nonrecurring depreciation .
Revenue of $25.302M beat Wall Street consensus of $24.900M by ~1.6% (+$0.402M); EPS consensus was unavailable, limiting the magnitude of the headline “beat” narrative* *.
Capital deployment accelerates with a new $34M MOB project (Palm Beach Gardens Medical Plaza I) on the UHS campus, supported by a 10-year master flex lease for ~75% of the rentable square feet; credit facility availability declined to $67.9M, reflecting continued borrowing for growth .
Dividend held at $0.74 in Q3 (raised by $0.005 in Q2), reinforcing income stability amid interest-rate headwinds; near-term stock catalysts are tied to execution of the new development and continued FFO resilience .

What Went Well and What Went Wrong

What Went Well

FFO per diluted share rose to $0.88 (+$0.06 YoY), with management citing a one-time settlement that added $275,000 (~$0.02 per diluted share) to Q3 results .
Lease revenue from non-related parties increased to $14.777M (+$0.435M YoY), and UHS bonus rental at McAllen Medical Center increased to $0.895M vs $0.765M in Q3 2024, supporting recurring rent momentum .
Capital pipeline: entered a ground lease for an 80,000 sq ft MOB at Palm Beach Gardens with a 10-year master flex lease covering ~75% of space; project expected to begin in November 2025 and complements long-duration cash flows .

What Went Wrong

GAAP net income was essentially flat YoY at $4.016M vs $3.997M despite strong FFO, as Q3 included ~~$0.9M nonrecurring depreciation and other income pressure (~~$256,000 combined net decrease) offsetting the settlement benefit .
Interest expense remained elevated at $4.816M, reflecting higher average borrowings under the credit agreement; management continues to flag rates as a headwind to capital market access and borrowing costs .
Credit availability declined sequentially to $67.9M (from $70.2M in Q2 and $75.5M in Q1), indicating less dry powder while development spending ramps; leverage remains primarily via the $425M facility .

Financial Results

Core Financials vs Prior Year, Prior Quarter, and Estimates

Metric	Q3 2024	Q2 2025	Q3 2025
Revenues ($USD Millions)	$24.494	$24.868	$25.302
Net Income ($USD Millions)	$3.997	$4.492	$4.016
Diluted EPS ($)	$0.29	$0.32	$0.29
FFO ($USD Millions)	$11.317	$11.794	$12.225
FFO per diluted share ($)	$0.82	$0.85	$0.88
Revenue Consensus ($USD Millions)	N/A	N/A	$24.900*
EPS Consensus ($)	N/A	N/A	Unavailable*

Note: Estimate values marked with an asterisk are from S&P Global; EPS consensus unavailable for Q3 2025*.
Comparison to estimates: Revenue beat by ~$0.402M (+1.6% vs $24.900M)* *.

Revenue Breakdown

Revenue Component ($USD Millions)	Q3 2024	Q2 2025	Q3 2025
Lease revenue – UHS facilities	$8.248	$8.381	$8.367
Lease revenue – Non-related parties	$14.342	$14.573	$14.777
Other revenue – UHS facilities	$0.242	$0.237	$0.233
Other revenue – Non-related parties	$0.305	$0.327	$0.577
Interest income on financing leases – UHS	$1.357	$1.350	$1.348
Total Revenues	$24.494	$24.868	$25.302

KPIs and Balance Sheet Highlights

KPI / Balance Sheet	Q3 2024	Q2 2025	Q3 2025
Dividend per share ($)	$0.730	$0.740	$0.740
Credit facility availability ($USD Millions)	N/A	$70.2	$67.9
Line of credit borrowings ($USD Millions)	$348.9	$354.8	$357.1
Net Real Estate Investments ($USD Millions)	$425.934	$417.355	$411.575
Investments in LLCs ($USD Millions)	$13.948	$20.947	$20.817

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q2 2025	$0.735 (Q1 payout)	$0.740 (declared and paid)	Raised
Dividend per share	Q3 2025	$0.740 (Q2 payout)	$0.740 (declared 9/22, paid 9/30)	Maintained
Palm Beach Gardens Medical Plaza I – MOB	Project start Nov 2025; opening Q3 2026	N/A	$34M estimated cost; 10-year master flex lease ~75% RSF; UHS subsidiary project manager	New project
Credit agreement	Through 9/30/2028	Option to extend up to two additional six-month periods	Same; $425M facility; $67.9M availability at 9/30/25	Maintained terms

UHT does not provide formal revenue/EPS/FFO guidance in the cited materials .

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available; themes inferred from management’s press releases and forward-looking statements.

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Interest rates and borrowing costs	Rates increased borrowing costs; challenged capital markets	Same emphasis on unfavorable rate impact	Continued focus on rate headwinds and capital access	Unchanged headwind
Staffing shortages for tenants	Nurse/clinical staffing shortages raising tenant wage expense	Persisting staffing challenges	Ongoing staffing constraints cited	Persisting
Tariffs/trade-driven cost risk	Potential supply/material cost increases due to trade policies	Same tariff-related risks	Continued mention of tariffs/material cost risks	Persisting
Macro/payer mix	Potential declines in patient volumes, unfavorable payer mix	Similar macro risks	Continued macro caution	Persisting
Capital deployment/development	No new project disclosed	No new project disclosed	New $34M Palm Beach Gardens MOB with long-term lease	Increasing capital activity
Tenant-linked bonus rent	McAllen bonus rent noted ($0.817M in Q1)	McAllen bonus rent ($0.862M in Q2)	McAllen bonus rent ($0.895M in Q3)	Improving contribution

Management Commentary

“Our net income during the third quarter of 2025… included… an increase of $275,000, or $.02 per diluted share, resulting from a one-time settlement and release agreement… [and] an other combined net decrease of $256,000, or $.02 per diluted share… including approximately $900,000 of nonrecurring depreciation expense recorded during the third quarter of 2025.”
“Our funds from operations (‘FFO’)… 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.”
On non-GAAP framing: Management underscores that FFO and adjusted metrics are useful for operating performance but not substitutes for GAAP measures, consistent with NAREIT standards .

Q&A Highlights

No earnings call transcript or Q&A content was available for Q3 2025 in our document set; the recap above relies on the 8-K press release and company-issued releases .

Estimates Context

Revenue: Actual $25.302M vs Wall Street consensus $24.900M; modest beat of ~$0.402M (+1.6%)* *.
EPS: Consensus unavailable; EPS printed $0.29 (flat YoY), limiting formal beat/miss assessment* *.
Note: S&P Global shows only one estimate on revenue for Q3 2025, which reduces statistical confidence in estimate comparisons*.
Values marked with an asterisk are retrieved from S&P Global.

Key Takeaways for Investors

FFO strength: FFO/share improved to $0.88 and FFO grew ~8% YoY, supported by non-related party rent growth and higher McAllen bonus rent; this underpins dividend coverage and income stability .
GAAP EPS neutrality: EPS at $0.29 was flat YoY, as nonrecurring depreciation (~$0.9M) offset the settlement benefit; watch for normalization in Q4 as depreciation rolls off .
Modest top-line beat: Revenue exceeded consensus by ~1.6%, but limited estimate participation (one estimate) suggests muted market reaction absent incremental disclosures* *.
Capital deployment ramp: $34M MOB project with a 10-year UHS master lease (~75% RSF) should add durable rent streams starting post-opening (target Q3 2026) .
Balance sheet watch: Credit facility availability trended down ($75.5M → $70.2M → $67.9M), reflecting higher borrowings; rate environment remains a headwind to financing flexibility .
Dividend stability: $0.74/share maintained in Q3 after a $0.005 raise in Q2; expect ongoing management focus on sustaining payouts supported by FFO .
Near-term catalysts: Execution milestones for Palm Beach Gardens MOB, sustained bonus rent contributions, and any updates on tenant operating trends (staffing, payer mix) could influence sentiment .

UNIVERSAL HEALTH REALTY INCOME TRUST (UHT)·Q3 2025 Earnings Summary