7.65% Dividend Yield, 38 Years of Dividend Hikes – Healthcare-Focused REIT Owning Acute Care Hospitals
Ever wonder about the quiet landlord raking in rents from acute care hospitals across 16 states, tied at the hip to one of America’s biggest healthcare operators? This REIT has weathered recessions, pandemics, and sector shifts by sticking to triple-net leases that shift costs to tenants, boasting occupancy rates north of 95% while hiking payouts for nearly four decades. Its portfolio blends irreplaceable medical office buildings and sprawling hospital campuses, capitalizing on healthcare’s inelastic demand without the hassle of direct ops.
Universal Health Realty Income Trust (UHT)
Financial Score: 84 / 99
Quick Tip
To keep your portfolio strong, stay on top of the financials for each company you hold. Solid companies mean better returns, so be sure to check in on their quarterly and annual numbers.Interesting stocks usually score 80+ on the Financial Scale, with top players hitting 90+. If that score dips below 80, it might be a good time to consider cutting ties before things take a turn.Universal Health Realty Income Trust (UHT) is a self-advised REIT specializing in healthcare real estate, primarily long-term acute care hospitals and medical offices leased mostly to Universal Health Services (UHS), its largest tenant. Operating nationwide with 77 properties totaling 8.4 million sq ft, it traces roots to 1970s spin-off from UHS, evolving into a pure-play landlord via strategic buys and master lease renewals that lock in escalators.
REIT Dividends Done Right
Dropping $2.98 yearly at 7.65% yield after 38 consecutive hikes? That’s REIT royalty status, my friend. Sure, the 228.19% payout ratio looks wild on paper, but for REITs mandated to shell out 90%+ of taxable income, it’s par for the course—FFO and AFFO are the real yardsticks here, keeping things sustainable. Five-year growth of 7% shows deliberate stewardship, backed by sticky triple-net rents from mission-critical facilities that rarely vacate. No capex headaches for owners, just steady escalators rolling in.
Q3 Results Rundown
Q3 2025 (ended Sep 30, reported Oct 27, 2025) delivered revenues of $25.3 million, edging up from $24.5 million YoY on higher non-UHS leases and interest income. Net income held flat at $4.0 million ($0.29 diluted EPS), pressured by nonrecurring depreciation offset by a $0.275M settlement gain. FFO climbed to $12.2 million ($0.88/share) from $11.3 million, underscoring cash generation strength. Pulled from UHT’s official PR on NYSE/Nasdaq/Yahoo—prime source, dated within window.
Expansion Plays Paying Off
UHT’s eyeing a $34 million Florida medical office buy, expanding non-UHS footprint amid 95%+ occupancy. Master lease with UHS renews through 2036 with CPI bumps, securing 80%+ recurring revenue from 20+ acute facilities. Nine-month revenues hit $74.7 million (up YoY), with equity in LLCs jumping to $1.2 million on joint ventures. Credit facility draws low at $67.9M available from $425M line, positioning for opportunistic adds in underserved healthcare pockets.
Hospital Harbor Masterstroke
Born from UHS spin-off in 1986, UHT pioneered healthcare REIT model with its “master lease”—a single doc blanketing 20+ properties, shielding rents from individual tenant woes and pioneering the structure still copied today.
Closing Assessment
Universal Health Realty Income Trust packs 7.65% yield, 38-year streak, 228.19% payout (REIT norm via FFO focus), and 7% five-year growth into a niche powerhouse. Trends favor healthcare tailwinds: aging demos, UHS synergy, low-vacancy leases. Financial Score: 86. Compelling for yield chasers, but dig FFO trends and tenant concentration—sub-90 score flags need for vigilance on leverage and expansion execution.
Someone’s sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.
Learn the MaxDividends Way
Start Here
🔑 Explore the Premium Hub (exclusive — upgrade to unlock)
Guides & Step-by-Step
Deep Insights
📖 I ❤️ Dividends: Why I Believe Dividend Investing Is the Best Strategy | E-Book
How Effective is the MaxDividends Strategy for Building Growing Passive Income
Help & Support
Got a question about dividends? Ask Max, your AI Dividend Assistant!
Didn’t get the answer you need? Reach out: max@maxdividends.app or team@maxdividends.app — we’ll help you out.