1. UHT is like Realty Income (O), but instead of owning and leasing retail properties, it owns and leases hospitals and medical facilities.

2. Similar to Simon Property Group (SPG), but UHT focuses on owning and leasing hospitals and medical office buildings rather than malls.

• Leasing of Acute Care Hospitals: Providing real estate facilities for short-term medical and surgical care.
• Leasing of Behavioral Health Facilities: Offering specialized properties for mental health and substance abuse treatment.
• Leasing of Medical Office Buildings: Supplying modern office spaces for physicians' practices, outpatient clinics, and other healthcare services.
• Leasing of Rehabilitation Facilities: Providing properties equipped for physical, occupational, and speech therapy services.
• Leasing of Child Care Centers: Offering facilities for early childhood education and care.

Universal Health Realty Income Trust (UHT) operates as a Real Estate Investment Trust (REIT) that owns and leases healthcare facilities.

The company sells primarily to other companies, specifically healthcare operators who lease its properties.

Its major customer is:

• Universal Health Services, Inc. (UHS) - Symbol: UHS

Universal Health Services, Inc. is a leading provider of hospital and healthcare services, and a significant portion of UHT's properties are leased to UHS and its subsidiaries. While UHT does have other tenants, UHS represents the overwhelming majority of its rental income and is its foundational customer due to their historical and ongoing relationship.

• Universal Health Services, Inc. (NYSE: UHS)

Alan B. Miller, Chairman of the Board of Trustees, Chief Executive Officer and President

Mr. Miller has been the Chairman of the Board and Chief Executive Officer of Universal Health Realty Income Trust (UHT) since its inception in 1986. He is also the Founder and Executive Chairman of Universal Health Services, Inc. (UHS), a Fortune 300 company and one of the largest providers of hospital and healthcare services in the nation, which he founded in 1978. Prior to founding UHS, Mr. Miller was Chairman and CEO of American Medicorp Inc., a pioneering hospital management company.

Charles F. Boyle, Senior Vice President and Chief Financial Officer

Mr. Boyle was appointed Vice President and Chief Financial Officer of the Trust in February 2003, having previously served as its Vice President and Controller since June 1991. He also holds the position of Senior Vice President and Controller of Universal Health Services, Inc. (UHS) since 2016, and was Vice President and Controller of UHS since 2003. His tenure with UHS began in 1989 as Director of Corporate Accounting.

Cheryl K. Ramagano, Senior Vice President - Operations, Treasurer and Secretary

Ms. Ramagano was promoted to Senior Vice President - Operations in June 2022. She was elected Vice President and Treasurer of the Trust in September 1992 and appointed Corporate Secretary in 2003. Ms. Ramagano has also served as Senior Vice President and Treasurer of Universal Health Services, Inc. (UHS) since 2016, and Vice President and Treasurer since 2003.

Jennifer J. Diasio, Vice President and Controller

Ms. Diasio was promoted to Vice President and Controller in June 2025. She previously served as Universal Health Services' (UHS) Corporate Director of Internal Audit and held various other internal audit positions since 2010. In June 2025, she was also promoted to Associate Vice President of Accounting of UHS.

Karla J. Peterson, Vice President, Acquisitions and Development

Ms. Peterson was elected Vice President, Acquisitions and Development of the Trust in August 2022.

The key risks to Universal Health Realty Income Trust (UHT) are:

1. Tenant Concentration Risk: Universal Health Realty Income Trust has a significant revenue exposure to its largest tenant and advisor, Universal Health Services (UHS), accounting for approximately 40-41% of its Q1 2025 revenues. This high concentration means that UHT's financial health is closely tied to the performance and stability of UHS. There are specific concerns regarding expiring contracts for certain facilities with UHS in 2026, which include purchase options and cross-default clauses, introducing long-term uncertainty about asset retention and cash flow predictability.
2. Interest Rate Risk: A substantial portion of UHT's debt is exposed to variable interest rates, specifically SOFR-based rates. As of the first quarter of 2025, approximately $185 million of its revolving credit facility was unhedged, leaving it vulnerable to future interest rate increases. Should interest rates continue to rise or swap settlements become less favorable, UHT's interest expenses could escalate, leading to a compression of earnings and a reduction in funds available for dividends or reinvestment. Slower than anticipated interest rate cuts by the Federal Reserve could also delay expected improvements in Funds From Operations (FFO).
3. Weakening Profitability and Macroeconomic Headwinds: UHT has experienced declining net income and Funds From Operations (FFO) in the first and second quarters of 2025. This decline is attributed to factors such as weaker revenues, higher interest expenses, lower tenant reimbursements, and reduced property-level income. The company's management has also voiced concerns about broader macroeconomic pressures impacting its healthcare-related tenants, including wage inflation, staff shortages, and potential changes in Medicaid funding, which directly affect rental revenues and long-term lease stability.

Universal Health Realty Income Trust (UHT) is poised for future revenue growth over the next two to three years, driven by several key factors:

1. New Property Developments and Acquisitions: UHT is actively pursuing new property investments, such as the planned medical office building (MOB) in Palm Beach for its main tenant, Universal Health Services (UHS), estimated to be completed in the third quarter of next year with a significant construction cost of $34 million. The company's portfolio predominantly consists of medical office buildings (71%) and acute care hospitals (17%), and new developments and acquisitions in these areas are expected to contribute to revenue expansion.
2. Rent Escalations in Existing Leases: A direct driver of revenue growth for UHT comes from built-in rent escalators within its existing lease agreements, which are projected to be in the range of 2-5% annually. This provides a consistent and predictable stream of increasing rental income.
3. Growing Demand for Healthcare Facilities, Especially Outpatient and Medical Office Buildings: The healthcare sector is experiencing a shift in services from inpatient to outpatient settings, which is expected to fuel demand for medical office buildings. UHT's significant focus on MOBs positions it well to capitalize on this market trend. Its primary tenant, UHS, is also expanding its outpatient behavioral health services, further supporting this driver.
4. Strong Financial Performance and Growth of Universal Health Services (UHS): Universal Health Services (UHS), which accounts for 40% of UHT's revenue, serves as both its main tenant and manager. UHS has demonstrated strong financial health, with consistent revenue growth and raised earnings guidance for 2025. The continued success and expansion of UHS are expected to provide a stable and growing revenue base for UHT.

Outbound Investments

• In 2023, Universal Health Realty Income Trust acquired the McAllen Doctor's Center, a 79,500 rentable square foot medical office building in McAllen, Texas.
• In March 2023, the construction of Sierra Medical Plaza I, an 86,000 square foot multi-tenant medical office building located in Reno, Nevada, was substantially completed.
• During 2021, the company acquired a 44,400 rentable square foot office building in Las Vegas, Nevada, and a 20,100 square foot multi-tenant medical office building in Frederick, Maryland.

Capital Expenditures

• Universal Health Realty Income Trust's capital expenditures increased significantly to $23.20 million in 2023.
• The company's capital reinvestment projects are focused on promoting energy efficiency, reducing waste, and protecting the environment through features like updated building automation systems and LED lighting.
• Demolition expenses for a former specialty hospital in Chicago amounted to approximately $1.5 million in 2023, with $1.1 million incurred in the first two quarters of 2023 and $332,000 in the fourth quarter of 2022.