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Universal Health Realty Income Trust: Little Known With A Solid Yield And Balance Sheet

Published Sun, 10 Feb 2019 15:43:26 -0500 on Seeking Alpha

Investment Thesis
We believe that Universal Health Realty Income Trust (UHT) will do well either through growing organically over the next few decades or potentially being acquired by a larger REIT. We think that either way UHT is a speculative REIT that pays you to wait. We think investors should wait for the price to come in a bit before buying but longer term we have very high hopes for UHT.
Why is UHT Unique?
Universal Health Realty Income Trust is a small operator based in King of Prussia, Pennsylvania. By small we mean that UHT has a market cap of just over $1 billion and assets of just under 500 million as of September 2018. UHT operates a diverse set of 69 properties across 20 states. They specifically invest in medical office buildings, acute care hospitals, rehabilitation centers, sub-acute facilities, free-standing emergency, and childcare centers. UHT has a tremendous opportunity to grow over the next few decades as the need for healthcare facilities continues to grow and UHT is able to acquire new properties. As more properties are acquired UHT will be able to gain scale and pass on even greater distributions to clients. With 30 states and countless major cities to expand to, we think UHTs potential is virtually limitless.

Source: UHT
Why We Think UHT Is Financially Strong
REITs, like Universal Health Realty Income Trust, do not often trade on the classic metrics like price-to-earnings or price-to-sales the way that other companies do. REIT... Read more