Universal Health Realty Income Trust: This 8.1% REIT Is Now More Attractive (Rating Upgrade)

Philip Wang 1.24K Followers Follow Summary Universal Health Realty Income Trust is upgraded to 'Buy' with a $39.50/share price target after the stock fell to my suggested entry point. UHT's Q2 2026 FFO rose 5.88% year-on-year, driven by lower interest costs, not revenue growth, and the dividend remains well-covered with an 8.1% yield. Key risks include UHS tenant concentration (40% of revenue), expiring interest rate swaps, and upcoming lease expirations at two medical centers. UHT trades at a slight discount to sector median multiples, offering an attractive risk/reward profile given stable financials and consistent dividend growth. erdikocak/iStock via Getty Images Introduction I previously covered Universal Health Realty Income Trust ( UHT ) in May this year and initiated coverage with a “Hold” rating. My main reason for my rating was that the company was trading at roughly fair This article was written by Philip Wang 1.24K Followers Follow Dividend-focused investor specializing in REITs. I write fundamental deep dives on REITs, emphasizing sustainable dividends, balance sheet strength, and catalysts. Follow me for cycle-aware, income-oriented REIT ideas with clear Buy/Hold/Sell calls. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in UHT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.