Universal Health Realty is a high-quality REIT with strong cash conversion, but its analyst target has already been reached near the 52-week high, leverage is elevated, and the asymmetry gate has failed, pointing toward reducing the position.
Thesis pillars
- High Quality Cash Conversion→Stable
- Analyst Target Reached Negative Asymmetry→Stable
- Leverage Penalty Risk→Stable
- +1 more pillar — see the Why tab for full reasoning
Universal Health Realty Income (UHT) Stock Analysis
Breakout setup
Real Estate · REIT - Healthcare Facilities
Sell if holding. Analyst target reached at $43.70 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.6): -1.5.
Universal Health Realty Income Trust is a healthcare-focused REIT that owns 77 real estate investments across 21 states, including acute care hospitals, behavioral health hospitals, free-standing emergency departments, medical office buildings, and childcare centers. The trust... Read more
Sell if holding. Analyst target reached at $43.70 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.6): -1.5. Chart setup: Golden cross, above all MAs, RSI 67, MACD bullish. Score 5.3/10, high confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 19d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Universal Health Realty Income
About Universal Health Realty Income
Universal Health Realty Income Trust holds 77 real estate investments across 21 states, anchored by six hospital facilities — three acute care and three behavioral health — leased to subsidiaries of Universal Health Services. UHS-affiliated tenants generated approximately 40% of the trust's consolidated revenue in 2025, with the six UHS hospital leases alone contributing about 24% of revenue. The portfolio also includes medical office buildings, free-standing emergency departments, and childcare centers spanning states such as Texas, Florida, and Nevada.
The trust earns revenue through long-term net leases on hospitals, medical office buildings, and free-standing emergency departments, with the six UHS hospital leases unconditionally guaranteed by UHS and cross-defaulted with one another, plus bonus rent on McAllen Medical Center tied to the hospital's quarterly revenue. Lease escalators on the UHS hospital portfolio compound annually at rates ranging from 2% to 2.75% depending on the property. The trust is externally managed: UHS of Delaware, Inc., a wholly owned UHS subsidiary, serves as Advisor under an agreement dating to 1986, and the trust's officers are all employees of that UHS subsidiary rather than direct hires. Growth comes from ground-up medical office development on hospital campuses, including an approximately $34 million Palm Beach Gardens, Florida project master-leased 75% to a UHS subsidiary, and the recently completed approximately $35 million Sierra Medical Plaza I in Reno, Nevada.
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Because UHS operates the trust's most significant hospital assets and also serves as its external Advisor, the trust's dependency on a single counterparty runs deeper than typical REIT tenant concentration. The 10-K flags that UHS and its subsidiaries face pending legal actions, government investigations, and stockholder litigation, and directs investors to UHS's own SEC filings for details since those matters could affect UHS's ability to make lease payments. UHS also holds purchase options on several hospital properties exercisable at fair market value upon lease expiration or a change of control of the trust, a structural feature that could shrink the portfolio if UHS chooses to buy out leased facilities rather than renew.
See also: Real Estate · REIT - Healthcare Facilities
From Universal Health Realty Income 's most recent 10-K filing, extracted July 6, 2026.
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Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $43.70 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.6): -1.5. Chart setup: Golden cross, above all MAs, RSI 67, MACD bullish. Prior stop was $40.74. Score 5.3/10, high confidence.
Take-profit target: $45.37 (+3.8% upside). Prior stop was $40.74. Stop-loss: $40.74.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 2.6): -1.5; Consecutive earnings misses (2).
Universal Health Realty Income trades at a P/E of 34.6 (forward N/A). TrendMatrix value score: 5.6/10. Verdict: Sell.
8 analysts cover UHT with a consensus score of 2.3/5. Average price target: $42.
What does Universal Health Realty Income do?Universal Health Realty Income Trust is a healthcare-focused REIT that owns 77 real estate investments across 21...
Universal Health Realty Income Trust is a healthcare-focused REIT that owns 77 real estate investments across 21 states, including acute care hospitals, behavioral health hospitals, free-standing emergency departments, medical office buildings, and childcare centers. The trust earns revenue primarily from long-term property leases, with tenants affiliated with Universal Health Services, Inc. accounting for approximately 40% of consolidated revenue in 2025; a UHS subsidiary also serves as the trust's external Advisor.