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UHT - Universal Health Realty: The Market Overreacted To Floating Rate Debt
Universal Health Realty Income Trust
A significant amount of UHT's debt is in the form of floating rate line of credit borrowings, which makes the REIT vulnerable to rising interest rates.
That said, UHT survived the last rate-hiking cycle with a similar proportion of floating rate debt, suffering only a temporary and small dip in earnings.
The market has overreacted to UHT's floating rate debt while underappreciating the REIT's long track record of steady growth.