Universal Health Realty Remains Cheap Even After A Rebound

Summary

  • UHT has outperformed the broader real estate index this year, especially after its recent rebound.
  • Third quarter earnings weren't as bad as the market expected.
  • Interest expense increases are a known headwind, but the bigger issue is three persistent vacancies in the portfolio that are a cash drain.
  • UHT will likely survive this difficult period without a dividend cut.
  • Looking for a helping hand in the market? Members of High Yield Landlord get exclusive ideas and guidance to navigate any climate. Learn More »
Modern Hospital Building

JazzIRT

Thesis: Defensive ~6% Yield

Universal Health Realty Income Trust (NYSE:UHT) is a defensive healthcare REIT with a 35+ year dividend growth streak. Its portfolio of mostly triple-net leased medical office buildings, hospitals, and other healthcare facilities have survived four recessions and multiple interest rate

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This article was written by

20.43K Followers

Austin Rogers is a REIT specialist with a professional background in commercial real estate. He writes about high-quality dividend growth stocks with the goal of generating the safest growing passive income stream possible. Since his ideal holding period is "lifelong," his focus is on portfolio income growth rather than total returns.

Austin is a contributing author for the investing group High Yield Landlord, one of the largest real estate investment communities on Seeking Alpha, with thousands of members. It offers exclusive research on the global REIT sector, multiple real money portfolios, an active chat room, and direct access to the analysts. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of UHT, VNQ either through stock ownership, options, or other derivatives. 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.

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