Universal Health Realty Income Trust (UHT): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the durable income streams in specialized real estate, and that means looking closely at the structure behind Universal Health Realty Income Trust. Honestly, their business model is elegantly simple: they own healthcare and human-service properties and lock in tenants via long-term, triple-net leases, with Universal Health Services (UHS) being the main anchor, making up about 40% of their business. This setup delivered total Q3 2025 revenue of $25.302 million and a consistent dividend of $0.74 per share, which is defintely attractive for income seekers. But how do they manage the capital structure and those key partnerships to keep the cash flowing? Dive into the full Business Model Canvas below for the precise breakdown of their resources, costs, and revenue generation.

Universal Health Realty Income Trust (UHT) - Canvas Business Model: Key Partnerships

The Key Partnerships for Universal Health Realty Income Trust (UHT) center heavily on its relationship with Universal Health Services (UHS), which acts as both a major tenant and a service provider, alongside external financial and development partners.

Universal Health Services (UHS) functions as the primary relationship anchor, with a wholly-owned subsidiary acting as an advisor to Universal Health Realty Income Trust. This relationship is critical for securing long-term lease commitments, such as the 10-year master flex lease agreement covering approximately 75% of the rentable square feet for the new Palm Beach Gardens Medical Office Building (MOB).

The financing structure relies on established credit facilities. As of March 31, 2025, Universal Health Realty Income Trust had $349.5 million of borrowings outstanding under its $425 million credit agreement, which is scheduled to expire on September 30, 2028.

The revenue stream is diversified by non-related party leases. For the third quarter ended September 30, 2025, lease revenue from non-related parties reached $14.777 million, marking an increase of $0.435 million year-over-year.

The partnership with developers and contractors is exemplified by the new construction pipeline. The estimated cost for the 80,000 square foot Palm Beach Gardens MOB is approximately $34 million. A wholly-owned subsidiary of UHS is engaged to act as the project manager for this development.

Key financial and operational metrics related to these partnerships as of mid-2025 are summarized below:

The structure of the relationship with Universal Health Services involves specific financial flows:

• UHS bonus rental at McAllen Medical Center was $0.895 million in Q3 2025.
• UHS subsidiary executed a 10-year master flex lease for the new MOB.
• Construction start for the new MOB is expected in November, 2025.

For properties not managed by the primary related party, Universal Health Realty Income Trust utilizes third-party management structures, though specific financial data for this segment is not detailed in the latest reports.

Universal Health Realty Income Trust (UHT) - Canvas Business Model: Key Activities

Acquiring and developing healthcare and human-service properties.

Universal Health Realty Income Trust (UHT) portfolio consists of 76 properties located in 21 states as of the first quarter of 2025. The property mix is predominantly:

• Medical office buildings (MOBs): 71%
• Acute care hospitals: 17%
• Other facilities: rehabilitation hospitals, behavioral healthcare facilities, sub-acute care facilities, and childcare centers.

The trust has a stated market capitalization of $537 million as of mid-2025.

Managing long-term, triple-net lease agreements.

The primary tenant relationship involves Universal Health Services, Inc. (UHS), which contributes 40% of UHT's revenue. The advisory contract with UHS involves a fee equal to 0.7% of invested real estate assets. For the prior year, this advisory fee totaled $5.5 million against $47.8 million of Funds from Operations (FFO). Lease agreements typically feature rent escalations between 2-5% for most properties.

Securing capital via debt and equity markets for investments.

Universal Health Realty Income Trust operates under a $425 million credit agreement, scheduled to expire on September 30, 2028. As of June 30, 2025, borrowings totaled $354.8 million, leaving $70.2 million in available borrowing capacity. Interest expenses for the full year 2024 rose by $1.8 million to reach $18.8 million. For the first nine months of 2025, interest expenses were higher by $0.3 million due to increased debt.

Maintaining REIT compliance for tax-advantaged status.

The trust declared a third-quarter dividend of $0.74 per share, totaling $10.3 million in the aggregate, payable on September 30, 2025. For the nine-month period ended September 30, 2025, FFO was $2.59 per diluted share, a decrease from $2.61 per diluted share for the comparable period in 2024. The second quarter 2025 FFO was reported at $0.85 per diluted share. The full year 2024 FFO was $3.46 per diluted share.

The implied payout ratio based on the prior year's data is 85%.

Overseeing the development of new projects, like the 80,000 sq ft MOB.

In October 2025, Universal Health Realty Income Trust entered a ground lease to develop, construct, and own the real property for Palm Beach Gardens Medical Plaza I, an 80,000 square foot Medical Office Building (MOB) in Palm Beach Gardens, Florida. The estimated construction cost for this MOB is approximately $34 million. Construction engagement with a wholly-owned subsidiary of UHS, acting as project manager, is expected to start in November, 2025. Completion and opening are scheduled for the third quarter of 2026.

• New MOB Size: 80,000 square feet
• Estimated Cost: $34 million
• Projected Completion: Third quarter of 2026
• Lease Commitment: 10-year lease for approximately 75% of rentable square feet.

Universal Health Realty Income Trust (UHT) - Canvas Business Model: Key Resources

You're looking at the core assets that power Universal Health Realty Income Trust (UHT)'s operations right now, late in 2025. These aren't abstract concepts; they are hard numbers and established relationships that drive the business.

The foundation of Universal Health Realty Income Trust (UHT) is its physical real estate holdings. As of the latest reports, the portfolio stands at a concrete number of assets across a wide geographic spread. This scale is a key resource for generating consistent rental income.

The composition of this portfolio is heavily weighted toward a specific, stable asset class. You see a clear focus on Medical Office Buildings (MOBs), which typically benefit from long-term demand tied to healthcare services. This concentration is a deliberate strategic choice.

Here's a quick look at the physical and financial backbone of Universal Health Realty Income Trust (UHT) as of the third quarter of 2025:

The nature of the leases provides the stability you look for in an income vehicle. These are not short-term agreements; they are structured for the long haul, which translates directly to predictable cash flow for the trust.

For instance, a recently announced development project, the Palm Beach Gardens Medical Plaza I, is anchored by a 10-year master flex lease covering approximately 75% of the rentable square feet to a subsidiary of Universal Health Services (UHS). That's a decade of contracted cash flow right there.

The management expertise is an intangible but critical resource, provided by Universal Health Services (UHS). This relationship is deep; UHS is not just a tenant, it's the manager and a shareholder at 5.7%. This alignment is defintely important.

The operational link to UHS is quantified by revenue dependency and management cost:

• UHS is responsible for 40% of Universal Health Realty Income Trust (UHT)'s total revenue.
• UHS charges an advisory fee, which was 0.7% of the invested real estate assets.
• This advisory fee totaled $5.5 million against the $47.8 million of Funds From Operations (FFO) reported in the prior year.

You can see the tangible benefits of this relationship in the portfolio's composition and the long-term lease structures. It's a resource that mitigates leasing risk, even as the trust manages its leverage under the $425 million credit agreement.

Finance: draft 13-week cash view by Friday.

Universal Health Realty Income Trust (UHT) - Canvas Business Model: Value Propositions

You're looking at Universal Health Realty Income Trust (UHT) as a source of stable, income-generating real estate for your portfolio. The core value here is the REIT structure itself, which is designed to pass through rental income to you as the investor, aiming for consistency.

That consistency is clearly reflected in the dividend history. For instance, Universal Health Realty Income Trust declared and paid a Q3 dividend of $0.74 per share, which was paid on September 30, 2025. This quarterly payment supports an annual dividend of $2.96 per share. Honestly, the dividend coverage looks solid; the Q3 dividend was well-covered by Funds From Operations (FFO) of $0.88 per share, resulting in a payout ratio of approximately 84% based on that FFO figure.

The specialization in healthcare facilities is a major draw, placing UHT in a sector with inherent demand drivers. The portfolio is focused on properties supporting healthcare and human services, which is a key differentiator. You are investing in a portfolio that includes:

• Acute care hospitals
• Medical office buildings (MOBs)
• Rehabilitation hospitals
• Behavioral healthcare facilities
• Sub-acute care facilities
• Childcare centers

The value proposition of the lease structure is minimizing your operating expense risk because Universal Health Realty Income Trust primarily utilizes long-term, triple-net leases. This structure means the tenant generally covers property taxes, insurance, and maintenance, which helps UHT deliver that stable, predictable rental income stream we just discussed. This is supported by their active development pipeline, like the new 80,000-square-foot Palm Beach Gardens Medical Plaza I, which is backed by a 10-year master flex lease covering about 75% of the space, showing a commitment to long-duration cash flows.

Furthermore, Universal Health Realty Income Trust provides essential capital to healthcare operators through transactions like sale-leasebacks, which fuels growth for both the operator and UHT's asset base. The commitment to this growth is evident in the Q3 2025 results, where capital deployment accelerated with the new $34 million MOB project in Florida. This activity, while drawing down some liquidity, signals a clear path for future revenue generation.

Here's a quick look at some of the key financial and portfolio metrics as of late 2025:

Finance: draft 13-week cash view by Friday.

Universal Health Realty Income Trust (UHT) - Canvas Business Model: Customer Relationships

Long-term, contractual relationships via non-cancelable leases.

Universal Health Realty Income Trust (UHT) maintains a portfolio of 76 investments in 21 states. These relationships are anchored by long-duration contracts. For example, the McAllen Doctor's Center is master leased to a wholly-owned subsidiary of Universal Health Services, Inc. (UHS) for an initial term of twelve years, scheduled to expire on August 31, 2035. Furthermore, a new ground lease at Palm Beach Gardens involves a 10-year master flex lease covering approximately 75% of the space, with construction expected to begin in November 2025.

The nature of these contracts is designed for stability, as seen in the renewal options:

• McAllen Hospitals, L.P. has the option to renew its lease for three consecutive ten-year terms.
• The relationship with the main tenant is further solidified by the fact that five hospitals are leased to UHS subsidiaries and are guaranteed by UHS.

Direct, high-level relationship with the main tenant, UHS.

The concentration risk is significant, with UHS representing approximately 40% of UHT's revenue. This relationship is not just tenant-landlord; a UHS subsidiary, UHS of Delaware, Inc., acts as the advisor to Universal Health Realty Income Trust (UHT) pursuant to an annually renewable advisory contract. The financial success of the main tenant directly impacts UHT's performance, as evidenced by the UHS bonus rental at McAllen Medical Center increasing to $0.895M in Q3 2025 from $0.765M in Q3 2024. The advisory fee paid to UHS totaled $5.5 million against $47.8 million of funds from operations in 2024.

Low-touch, landlord-tenant model (triple-net leases shift maintenance to tenant).

The operational relationship is characterized by a low-touch landlord model, typical of triple-net leases where the tenant handles maintenance and operating expenses. The McAllen Doctor's Center is under a triple-net master lease. This structure helps maintain stable cash flow metrics, contributing to the Q3 2025 FFO per diluted share rising to $0.88. The portfolio's composition is heavily weighted toward medical office buildings (MOBs), which generally have lower churn.

Investor relations for common stock and debt holders.

Universal Health Realty Income Trust (UHT) manages relationships with its equity and debt holders through regular disclosures and distributions. The company trades on the NYSE under the symbol UHT. The enterprise value totals approximately $926 million. The Board of Trustees declared a quarterly dividend of $0.74 per share on September 10, 2025, payable on September 30, 2025, to shareholders of record as of September 22, 2025. For debt holders, as of March 31, 2025, UHT had $75.5 million of available borrowing capacity under its $425 million credit agreement, which is scheduled to expire on September 30, 2028.

Key financial metrics relevant to investor confidence include:

Lease renewal negotiations and rent escalators (typically 2-5%).

The contractual framework includes built-in revenue growth mechanisms. Universal Health Realty Income Trust (UHT) typically has rent escalations between 2-5% for most of its properties. This is a key driver for future FFO growth, estimated to be in the low-to-mid single digits in the years ahead. The negotiation of these terms is critical, as failure to renew at current or fair market value rates could require finding new operators or accepting potentially less favorable lease terms.

The expected impact of these escalators is factored into analyst projections for 2025 FFO, estimated to be between $3.45-$3.55 per share.

Universal Health Realty Income Trust (UHT) - Canvas Business Model: Channels

Direct leasing to healthcare operators and providers is the core mechanism for Universal Health Realty Income Trust (UHT) to generate revenue from its real estate assets.

• The property portfolio consists of 76 properties situated across 21 states.
• The asset mix is heavily weighted toward medical office buildings, which represent 71% of gross real estate asset value.
• Acute care hospitals account for another 17% of the gross real estate asset value.
• Leasing structures are primarily long-term, triple-net leases with established healthcare providers.
• The largest tenant, Universal Health Services, Inc., contributes 40% of Universal Health Realty Income Trust\'s revenue.

Investor relations website and SEC filings serve as the primary channels for communicating with the capital markets and existing shareholders.

Investment banks are utilized for debt and equity issuance to manage the capital structure and fund growth initiatives.

• The company had $349.5 million of borrowings outstanding under its $425 million credit agreement as of March 31, 2025.
• The interest expense increased in Q1 2025 due to higher average outstanding borrowings and an increased average effective borrowing rate.
• The company declared a quarterly dividend of $0.74 per share in September 2025.

Real estate brokers and developers are key to the acquisition channel, focusing on specific transaction types.

• The company\'s primary focus for property acquisition is on sale-leaseback and build-to-suit transactions.
• These transactions are structured with long-term, triple-net leases with established healthcare providers.
• The portfolio includes various facility types such as outpatient facilities, senior housing communities, and life science research facilities.
• The President and Chief Executive Officer, David V. DiLullo, guides the strategic acquisition and development activities.

Finance: draft 13-week cash view by Friday.

Universal Health Realty Income Trust (UHT) - Canvas Business Model: Customer Segments

Universal Health Services (UHS), the largest tenant (~40% of revenue).

Universal Health Services (UHS) accounted for 40% of Universal Health Realty Income Trust (UHT) revenue. For the year 2025, Universal Health Services is expected to reach a revenue of $17.4 billion and grow earnings per share by 30%. In the first quarter of 2025, lease revenue from Universal Health Services (UHS) facilities was $8.3 million.

The property portfolio composition directly reflects the primary customer base. As of early 2025, Universal Health Realty Income Trust (UHT) owned 76 properties across 21 states. The portfolio breakdown by asset type is as follows:

Third-party healthcare providers (hospitals, behavioral health).

Lease revenue from non-related parties, which includes third-party providers, was $14.3 million in the first quarter ended March 31, 2025. This segment represents the remainder of the revenue base outside of the primary relationship with Universal Health Services (UHS).

Medical practices and clinics leasing Medical Office Buildings (MOBs).

Medical Office Buildings (MOBs) constitute the largest physical asset class, representing approximately 71% of the gross real estate asset value. These buildings are leased to various medical practices and clinics.

Operators of specialty facilities and childcare centers.

The portfolio includes specialty facilities such as rehabilitation hospitals and behavioral healthcare facilities, alongside childcare centers. These operators form a smaller, distinct group of tenants within the Universal Health Realty Income Trust (UHT) customer base.

• Total properties owned as of March 31, 2025: 76.
• Total states with property presence: 21.
• Non-UHS lease revenue (Q1 2025): $14.3 million.

Universal Health Realty Income Trust (UHT) - Canvas Business Model: Cost Structure

The Cost Structure for Universal Health Realty Income Trust (UHT) is heavily influenced by its debt load and the nature of its real estate holdings, which are primarily triple-net leased.

Interest Expense is a significant cost driver, directly tied to the outstanding borrowings under its credit agreement. For the third quarter of 2025, interest expense was reported at $4.816 million, reflecting higher average borrowings. This elevated cost remains a headwind management flags regarding capital market access.

Non-cash expenses related to the property portfolio are substantial. Specifically, depreciation and amortization for the first quarter of 2025 totaled $6.8 million (or $6,845 thousand). This non-cash charge is excluded when calculating Funds From Operations (FFO), a key metric for the Real Estate Investment Trust (REIT).

The relationship with Universal Health Services, Inc. (UHS) introduces a specific management cost. UHT pays an Advisory fee to UHS. For the three months ended March 31, 2025, this fee amounted to $1,364 thousand (or $1.364 million). While the prompt suggests a structure of 0.7% on invested real estate assets, the direct dollar amount for a period is the concrete cost component.

The structure of UHT's leases aims to minimize direct operating costs for the Trust itself. The use of triple-net leases shifts the burden of property taxes, insurance, and maintenance to the tenants. However, property taxes can still impact results, as evidenced by a $563,000 reduction in property tax benefits recorded in the second quarter of 2025, which negatively affected net income.

Key reported expenses for recent periods highlight the cost base:

General and administrative expenses are a component of the overall cost structure, though specific, standalone figures for this category in 2025 are not explicitly detailed in the same manner as the interest or depreciation figures in the readily available summaries. The Trust's total outstanding borrowings under its $425 million credit agreement stood at $357.1 million as of September 30, 2025, underscoring the debt-related cost exposure.

The primary cost drivers for Universal Health Realty Income Trust (UHT) are:

• Interest Expense on outstanding debt.
• Depreciation and Amortization, a non-cash charge.
• The Advisory Fee paid to UHS.
• Variable costs like Property Taxes, despite triple-net leases.

Universal Health Realty Income Trust (UHT) - Canvas Business Model: Revenue Streams

The revenue streams for Universal Health Realty Income Trust (UHT) are anchored in long-term real estate leases across its portfolio of healthcare and human-service related facilities.

Lease revenue from non-related parties was reported at $\text{\$14.777 million}$ for the third quarter of 2025. This stream is supported by a portfolio spanning $\text{76}$ properties across $\text{21}$ states.

A significant portion of the revenue is tied to its primary relationship with Universal Health Services, Inc. (UHS), which is both a major tenant and the manager of UHT. Lease revenue from UHS facilities is stated to be approximately $\text{40\%}$ of total revenue.

The total revenue for the third quarter of 2025 reached $\text{\$25.302 million}$, which represented a modest beat against consensus estimates. This top line was bolstered by specific performance metrics, such as the UHS bonus rental income, which included an amount like $\text{\$0.895 million}$ generated from McAllen Medical Center in Q3 2025.

The income is derived from a diverse mix of healthcare property types, which is a key element of the business model stability. As of late 2025, the property portfolio composition is weighted toward medical office buildings (MOBs) and acute care hospitals.

Here is a breakdown of the Q3 2025 revenue components based on the reported figures:

The revenue streams are generated from various property types, including:

• $\text{71\%}$ from medical office buildings (MOBs).
• $\text{17\%}$ from acute care hospitals.
• Behavioral health care hospitals.
• Specialty facilities.
• Free-standing emergency departments.
• Childcare centers.

The company is actively growing this base, having entered a ground lease for an $\text{80,000}$ sq ft MOB in Palm Beach Gardens, expected to begin construction in November 2025, supported by a $\text{10}$-year master flex lease covering approximately $\text{75\%}$ of the space to a UHS subsidiary.