Universal Health Realty me Trust(UHT)

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Universal Health Realty me Trust(UHT) - 2025 Q1 - Quarterly Results
2025-04-28 20:25
[Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) This section highlights the Trust's Q1 2025 financial performance, including a decline in net income and FFO, alongside details on dividend declarations and available capital [Consolidated Results of Operations](index=1&type=section&id=Consolidated%20Results%20of%20Operations) Universal Health Realty Income Trust's Q1 2025 net income decreased to $4.8 million from $5.3 million in Q1 2024, primarily due to lower property income and increased interest expenses | Metric | Q1 2025 | Q1 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income | $4.8 million | $5.3 million | -$0.5 million | -9.4% | | Diluted EPS | $0.34 | $0.38 | -$0.04 | -10.5% | - The decrease in net income was primarily due to a **$401,000** (or **$.03 per share**) net decrease in income from various properties and a **$122,000** (or **$.01 per share**) increase in interest expense, driven by higher average borrowings and a higher effective borrowing rate[3](index=3&type=chunk) [Funds From Operations (FFO)](index=1&type=section&id=Funds%20From%20Operations%20(FFO)) Q1 2025 Funds from Operations (FFO) decreased to $11.9 million, or $.86 per diluted share, from $12.4 million, or $.90 per diluted share, in Q1 2024, mainly due to lower net income | Metric | Q1 2025 | Q1 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | FFO | $11.9 million | $12.4 million | -$0.5 million | -4.0% | | FFO per Diluted Share | $0.86 | $0.90 | -$0.04 | -4.4% | [Dividend and Capital Resources](index=1&type=section&id=Dividend%20and%20Capital%20Resources) The Trust declared a Q1 2025 dividend of $.735 per share and maintained $75.5 million in available borrowing capacity under its $425 million credit agreement - A dividend of **$.735 per share**, totaling **$10.2 million**, was declared on March 11, 2025, and paid on March 31, 2025[5](index=5&type=chunk) - As of March 31, 2025, the Trust had **$349.5 million** in borrowings and **$75.5 million** of available capacity under its **$425 million** credit agreement[6](index=6&type=chunk) [Business Overview and Outlook](index=1&type=section&id=Business%20Overview%20and%20Outlook) This section provides an overview of the Trust's healthcare real estate investments and outlines key operational and financial risks [Company Profile and Risk Factors](index=1&type=section&id=Company%20Profile%20and%20Risk%20Factors) Universal Health Realty Income Trust is a REIT investing in 76 healthcare facilities across 21 states, facing risks from funding reductions, tenant challenges, and rising interest rates - The Trust invests in healthcare facilities, including acute care hospitals, behavioral health hospitals, and medical office buildings, with a portfolio of **76 properties** in **21 states**[7](index=7&type=chunk)[8](index=8&type=chunk) - Key operational and financial risks include reductions in federal funding for state Medicaid programs, tenant challenges from staffing shortages and increased wage expenses, deteriorating macroeconomic conditions leading to declining patient volumes, and increased borrowing costs due to rising interest rates[10](index=10&type=chunk)[11](index=11&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP measures like FFO and adjusted net income to clarify operating performance, emphasizing they are supplemental to GAAP metrics - The Trust believes non-GAAP measures like adjusted net income and FFO are helpful to investors for measuring operating performance by excluding non-recurring or non-operational items[12](index=12&type=chunk) - FFO is a widely recognized performance measure for REITs, computed in accordance with NAREIT standards, and is not a substitute for net income or cash flow from operating activities under GAAP[13](index=13&type=chunk) - Investors are encouraged to use GAAP measures when evaluating financial performance and to understand that non-GAAP measures may not be comparable to similarly titled measures of other companies[15](index=15&type=chunk) [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements, including statements of income, FFO reconciliation, and balance sheets [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) For Q1 2025, total revenues were $24.5 million, with net income of $4.8 million, reflecting a decrease from Q1 2024 due to lower revenues and stable expenses | (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | **$24,548** | **$25,141** | | Total Expenses | $15,514 | $15,678 | | Interest expense, net | $(4,669) | $(4,547) | | **Net Income** | **$4,777** | **$5,300** | | **Diluted EPS** | **$0.34** | **$0.38** | [Schedule of Non-GAAP Supplemental Information](index=5&type=section&id=Schedule%20of%20Non-GAAP%20Supplemental%20Information) The company reconciles GAAP Net Income to FFO, showing Q1 2025 Net Income of $4.8 million adjusted by $7.2 million in depreciation to yield an FFO of $11.9 million Calculation of Funds From Operations (FFO) - Q1 2025 vs Q1 2024 (In thousands) | (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net income** | **$4,777** | **$5,300** | | Plus: Depreciation and amortization | $7,153 | $7,113 | | **FFO** | **$11,930** | **$12,413** | | FFO per Diluted Share | $0.86 | $0.90 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $573.5 million, total liabilities $401.3 million, and total equity $172.2 million, with equity decreasing due to dividend distributions | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Real Estate Investments | $420,962 | $425,934 | | **Total Assets** | **$573,482** | **$580,862** | | Line of credit borrowings | $349,500 | $348,900 | | **Total Liabilities** | **$401,316** | **$401,321** | | **Total Equity** | **$172,166** | **$179,541** |
UNIVERSAL HEALTH REALTY INCOME TRUST REPORTS 2025 FIRST QUARTER FINANCIAL RESULTS
Prnewswire· 2025-04-28 20:20
Consolidated Results - For the three-month period ended March 31, 2025, net income was $4.8 million, or $0.34 per diluted share, compared to $5.3 million, or $0.38 per diluted share, in the first quarter of 2024, indicating a decrease of $523,000 or $0.04 per diluted share [1][2][14] - The decrease in net income was attributed to a $401,000 decrease in income from various properties and a $122,000 increase in interest expense due to higher average borrowings and effective borrowing rates [2][3] Funds from Operations (FFO) - FFO for the first quarter of 2025 was $11.9 million, or $0.86 per diluted share, down from $12.4 million, or $0.90 per diluted share, in the first quarter of 2024, reflecting a decrease of $483,000 or $0.04 per diluted share [3][15] - The decline in FFO was primarily due to the decrease in net income during the same period [3] Dividend Information - A dividend of $0.735 per share, totaling $10.2 million, was declared on March 11, 2025, and paid on March 31, 2025 [4] Capital Resources - As of March 31, 2025, the company had $75.5 million of available borrowing capacity under a $425 million credit agreement, which is set to expire on September 30, 2028 [5] General Information - Universal Health Realty Income Trust is a real estate investment trust that invests in healthcare and human-service related facilities, with investments in 76 properties across 21 states [6]
UHT Stock Gains Following Earnings Rise in Q4, FFO Improves Y/Y
ZACKS· 2025-02-28 17:35
Core Viewpoint - Universal Health Realty Income Trust (UHT) demonstrated strong earnings growth in Q4 2024, outperforming the S&P 500 Index during the same period, driven by increased income from properties and reduced operating expenses [1][2][8]. Financial Performance - UHT reported a net income of $4.7 million, or $0.34 per diluted share, for Q4 2024, a 29.7% increase from $3.6 million, or $0.26 per diluted share, in Q4 2023 [2]. - For the full year 2024, net income rose 24.9% to $19.2 million, or $1.39 per diluted share, compared to $15.4 million, or $1.11 per diluted share, in 2023 [3]. - Adjusted net income for Q4 2024 increased by $836,000, or $0.06 per diluted share, supported by a $1.2 million rise in income from various properties [2][3]. Funds from Operations (FFO) - FFO for Q4 2024 increased by 3.3% to $11.8 million, or $0.85 per diluted share, compared to $11.4 million, or $0.82 per diluted share, in the prior year [4]. - For the full year, FFO grew 7.4% to $47.9 million, or $3.46 per diluted share, from $44.6 million, or $3.23 per diluted share, in 2023 [4]. Revenue Breakdown - Lease revenue from Universal Health Services (UHS) facilities remained stable at $8.3 million in Q4 2024, while lease revenue from non-related parties increased by 3.1% to $14.5 million [5]. - For the full year 2024, lease revenue from UHS facilities increased by 3.1% to $33.6 million, and lease revenue from non-related parties rose by 4.8% to $57.7 million [6]. Operating Expenses - Operating expenses in Q4 2024 totaled $15.4 million, down 4.8% from $16.2 million in Q4 2023, aided by reduced depreciation and amortization [7]. - For the full year, operating expenses were $62.2 million, down 3.1% from $64.2 million in 2023 [7]. Management Commentary - The company attributed its earnings growth to increased income from various properties and lower property-related expenses, particularly in Chicago, where previous demolition costs had negatively impacted results [8]. Liquidity and Debt Management - To enhance liquidity, UHT amended its credit agreement in September 2024, increasing its borrowing capacity to $425 million and extending the maturity date to September 30, 2028 [9]. - At year-end, the company had $348.9 million in outstanding borrowings and $76.1 million in available borrowing capacity [9]. Interest Rate Management - UHT entered into a new interest rate swap agreement in October 2024, locking in a fixed rate of 3.2725% on $85 million of debt through September 2028, replacing two expired swaps with a lower combined rate [11]. Future Outlook - Management did not provide specific financial guidance for 2025 but indicated that macroeconomic conditions, particularly interest rates and property-related expenses, will continue to influence performance [12]. Other Developments - The company completed the construction of Sierra Medical Plaza I in Reno, NV, in March 2023, which is currently 68% leased [13]. - UHT sold a vacant specialty facility in Corpus Christi, TX, in December 2023 for $3.9 million, recording a $232,000 loss on divestiture [14].
Universal Health Realty me Trust(UHT) - 2024 Q4 - Annual Results
2025-02-26 21:50
Financial Performance - For the three-month period ended December 31, 2024, net income was $4.7 million, or $0.34 per diluted share, compared to $3.6 million, or $0.26 per diluted share in Q4 2023, representing a 30.6% increase in net income[1][2] - Adjusted net income for Q4 2024 increased by $836,000, or $0.06 per diluted share, primarily due to a $1.2 million increase in income from various properties, partially offset by a $337,000 increase in interest expense[3] - For the twelve-month period ended December 31, 2024, net income was $19.2 million, or $1.39 per diluted share, compared to $15.4 million, or $1.11 per diluted share in 2023, indicating a 24.7% increase[5][7] - Adjusted net income for the year ended December 31, 2024, increased by $3.6 million, or $0.26 per diluted share, driven by a $3.5 million increase in income from various properties and a $2.0 million reduction in expenses related to a property in Chicago[8] - Adjusted net income for the twelve months ended December 31, 2024, was $19,234,000, compared to $15,632,000 in 2023, representing a year-over-year increase of 23.4%[35] Funds from Operations (FFO) - Funds from operations (FFO) for Q4 2024 were $11.8 million, or $0.85 per diluted share, compared to $11.4 million, or $0.82 per diluted share in Q4 2023, reflecting a 3.3% increase[4] - FFO for the year ended December 31, 2024, was $47.9 million, or $3.46 per diluted share, compared to $44.6 million, or $3.23 per diluted share in 2023, marking a 7.4% increase[9] - Funds From Operations (FFO) for the three months ended December 31, 2024, was $11,758,000, compared to $11,384,000 in 2023, indicating a growth of 3.3%[33] Revenue and Assets - Total revenues for the three months ended December 31, 2024, increased to $24,642,000 from $24,320,000 in the same period of 2023, representing a growth of 1.3%[29] - Total assets decreased to $580,862,000 as of December 31, 2024, from $596,369,000 as of December 31, 2023, a decline of 2.6%[39] - The company’s net real estate investments decreased to $425,934,000 as of December 31, 2024, from $443,795,000 in 2023, a decline of 4.0%[39] Liabilities and Borrowings - Total liabilities increased to $401,321,000 as of December 31, 2024, compared to $395,435,000 in 2023, reflecting a rise of 1.5%[39] - As of December 31, 2024, the company had $348.9 million in borrowings outstanding under its $425 million revolving credit agreement, with $76.1 million of available borrowing capacity[12] Dividends - The fourth quarter dividend declared was $0.735 per share, totaling $10.1 million, paid on December 31, 2024[10] - The company reported a dividend paid per share of $0.735 for the three months ended December 31, 2024, up from $0.725 in the same period of 2023[33] Interest Rate Management - In October 2024, the company entered into an interest rate swap agreement with a notional amount of $85 million at a fixed rate of 3.2725%, effective until September 30, 2028[13] Property Management - The company continues to market vacant properties in Chicago and Evansville, with future operating expenses expected to be incurred until these properties are leased[18] Shareholder Information - Basic earnings per share for the three months ended December 31, 2024, rose to $0.34 from $0.26 in 2023, marking a 30.8% increase[31] - The weighted average number of shares outstanding for diluted earnings per share was 13,850,608 for the year ended December 31, 2024, compared to 13,823,899 in 2023, showing a slight increase[39]
Universal Health Realty me Trust(UHT) - 2024 Q4 - Annual Report
2025-02-26 21:47
[Part I](index=4&type=section&id=PART%20I) UHT is a REIT specializing in healthcare and human-service facilities, with 76 properties and significant ties to UHS [Business](index=4&type=section&id=Item%201.%20Business) Universal Health Realty Income Trust (UHT) is a Real Estate Investment Trust (REIT) specializing in healthcare and human-service facilities, with a portfolio of 76 properties across 21 states and significant business links to Universal Health Services, Inc. (UHS) [Overview of Facilities](index=4&type=section&id=Item%201.%20Business-Overview%20of%20Facilities) As of February 26, 2025, the Trust's portfolio consists of 76 real estate investments in 21 states, including hospitals, medical office buildings, and preschools - The Trust's portfolio includes **seventy-six investments** across **twenty-one states**, comprising six hospitals, sixty medical/office buildings, four free-standing emergency departments, four preschools, one vacant specialty facility, and one parcel of vacant land[17](index=17&type=chunk) [Relationship with Universal Health Services, Inc. (UHS)](index=7&type=section&id=Item%201.%20Business-Relationship%20with%20Universal%20Health%20Services%2C%20Inc.%20%28UHS%29) UHT has a critical and multifaceted relationship with Universal Health Services, Inc. (UHS), which serves as a major tenant, advisor, and employer of UHT's officers - Aggregate revenues from UHS-related tenants constituted approximately **40% of UHT's consolidated revenue** for the year ended December 31, 2024[32](index=32&type=chunk)[47](index=47&type=chunk)[96](index=96&type=chunk) - A transaction involving the Aiken and Canyon Creek properties was accounted for as a failed sale-leaseback, resulting in a financing receivable from UHS of **$82.8 million** as of December 31, 2024[33](index=33&type=chunk)[335](index=335&type=chunk) UHS-Related Hospital Lease Summary (as of Jan 1, 2025) | Hospital Name | Annual Minimum Rent | End of Lease Term | Renewal Term (years) | | :--- | :--- | :--- | :--- | | McAllen Medical Center | $5,485,000 | December, 2026 | 5 | | Wellington Regional Medical Center | $6,805,000 | December, 2026 | 5 | | Aiken Regional Medical Center/Aurora Pavilion | $4,164,000 | December, 2033 | 35 | | Canyon Creek Behavioral Health | $1,882,000 | December, 2033 | 35 | | Clive Behavioral Health | $2,851,000 | December, 2040 | 50 | - A subsidiary of UHS serves as the Advisor, receiving a fee computed at **0.70% of average invested real estate assets**, amounting to **$5.5 million in 2024**, $5.3 million in 2023, and $5.1 million in 2022[45](index=45&type=chunk)[46](index=46&type=chunk) - As of December 31, 2024, UHS owned **5.7% of the Trust's outstanding shares** of beneficial interest[47](index=47&type=chunk)[372](index=372&type=chunk) [Competition](index=13&type=section&id=Item%201.%20Business-Competition) The Trust faces significant competition for acquiring, leasing, and financing healthcare facilities from various entities, including other REITs, private investors, and healthcare systems - The Trust competes with other REITs, private investors, banks, and healthcare systems for investment opportunities, which could result in fewer opportunities and lower returns[50](index=50&type=chunk) - Facility operators face intense competition for patients and staff from other providers, including non-profit and government-supported entities, which can affect patient volumes and operating costs[51](index=51&type=chunk)[52](index=52&type=chunk) [Regulation and Other Factors](index=13&type=section&id=Item%201.%20Business-Regulation%20and%20Other%20Factors) The Trust's financial performance is indirectly affected by extensive government regulation of the healthcare industry, as its tenants' revenues are heavily dependent on Medicare and Medicaid - Approximately **27% of the Trust's revenues in 2024** were from leases with operators of hospitals and FEDs, whose own revenues are significantly derived from Medicare and Medicaid[54](index=54&type=chunk) - Changes in government healthcare programs, including reimbursement limitations and potential repeals or replacements of the ACA, create significant uncertainty and could adversely affect tenants' ability to pay rent[55](index=55&type=chunk)[56](index=56&type=chunk)[58](index=58&type=chunk) - The financial ability of lessees to make rent payments is affected by their compliance with complex regulations concerning licensure, certification, and reimbursement, which can impact their revenue and operating costs[64](index=64&type=chunk) [Executive Officers of the Registrant](index=17&type=section&id=Item%201.%20Business-Executive%20Officers%20of%20the%20Registrant) The executive officers of the Trust, including Alan B. Miller as Chairman, CEO, and President, are all employees of a wholly-owned subsidiary of UHS - All executive officers of the Trust are employees of a wholly-owned subsidiary of UHS[44](index=44&type=chunk)[67](index=67&type=chunk) [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) The Trust is exposed to a wide range of risks, including substantial revenue dependency on UHS, healthcare regulatory changes, competition, tenant financial stability, cybersecurity threats, interest rate fluctuations, and maintaining REIT status [Risks Related to Healthcare Industry and Regulation](index=17&type=section&id=Item%201A.%20Risk%20Factors-Risks%20Related%20to%20Healthcare%20Industry%20and%20Regulation) The financial health of the Trust's tenants is heavily influenced by government healthcare policy, with reductions in Medicare and Medicaid funding and uncertainty from healthcare reform posing significant risks - Reductions in Medicare and Medicaid funding, including the **2% sequestration cuts extended through 2032** and future DSH allotment reductions, could materially and adversely affect the operators of the Trust's facilities[77](index=77&type=chunk)[78](index=78&type=chunk) - Uncertainty from healthcare reform, including legal challenges to the ACA and potential legislative changes, could materially affect the business and results of facility operators, in turn reducing the Trust's revenues[79](index=79&type=chunk)[82](index=82&type=chunk)[85](index=85&type=chunk) - The trend toward value-based purchasing by both government and private payers may negatively impact revenues if hospital operators are unable to meet quality and efficiency standards[89](index=89&type=chunk)[91](index=91&type=chunk) - UHS, a key tenant and advisor, is subject to governmental investigations and legal actions, which could have a material adverse effect on its financial condition and, consequently, on the Trust[96](index=96&type=chunk)[97](index=97&type=chunk)[99](index=99&type=chunk) [Risks Related to Business Operations](index=25&type=section&id=Item%201A.%20Risk%20Factors-Risks%20Related%20to%20Business%20Operations) Operational risks are dominated by the Trust's heavy reliance on UHS, potential conflicts of interest, competition for properties, tenant financial deterioration, and cybersecurity incidents - A substantial portion of revenues (approx. **40% in 2024**) are dependent on UHS, and its failure to meet obligations or renew leases could materially reduce the Trust's revenues and net income[108](index=108&type=chunk) - The relationship with UHS, where a subsidiary is the advisor and all officers are UHS employees, may create conflicts of interest in business dealings[109](index=109&type=chunk)[110](index=110&type=chunk) - The Trust holds non-controlling interests in four joint ventures, exposing it to potential losses and lack of control over these assets[111](index=111&type=chunk) - A cybersecurity incident could lead to HIPAA violations, data breaches, and significant financial and reputational damage, as the Trust relies on IT systems from UHS and third-party managers[133](index=133&type=chunk)[134](index=134&type=chunk) [Risks Related to Market Conditions and Liquidity](index=34&type=section&id=Item%201A.%20Risk%20Factors-Risks%20Related%20to%20Market%20Conditions%20and%20Liquidity) The Trust's financial performance is subject to broader economic conditions, including inflation, economic downturns, and capital market fluctuations, which can impact tenant ability to pay rent and access to funding - Continuing inflationary pressures on personnel and other costs could negatively impact tenants' ability to make rental payments[136](index=136&type=chunk)[137](index=137&type=chunk) - The Trust's growth depends on raising capital, and deterioration of credit markets or increased interest rates may adversely affect access to funding on reasonable terms[139](index=139&type=chunk)[140](index=140&type=chunk) - Rising costs in construction materials and labor could have an adverse effect on the cash flow return on investment for new capital projects[143](index=143&type=chunk) [Risks Related to REIT Status and Taxation](index=29&type=section&id=Item%201A.%20Risk%20Factors-Risks%20Related%20to%20REIT%20Status%20and%20Taxation) Maintaining REIT status requires adherence to complex IRS provisions, with failure resulting in corporate income taxes and the need to distribute at least 90% of taxable income potentially forcing dilutive actions - Failure to maintain REIT status would subject the Trust to federal income tax at regular corporate rates, significantly reducing cash flow available for distributions[119](index=119&type=chunk)[121](index=121&type=chunk) - To meet the **90% income distribution requirement** for REITs, the Trust may need to borrow funds, issue equity, or sell assets, which could adversely affect its financial condition[124](index=124&type=chunk) - Dividends paid by the Trust, as a REIT, are generally not eligible for reduced tax rates, potentially making its shares less attractive to individual investors compared to regular corporations[123](index=123&type=chunk) [Risks Related to Our Securities](index=36&type=section&id=Item%201A.%20Risk%20Factors-Risks%20Related%20to%20Our%20Securities) The market value of the Trust's common stock is sensitive to interest rate changes and overall economic conditions, and anti-takeover provisions may deter transactions beneficial to shareholders - The price of the common stock is sensitive to changes in market interest rates; an increase in rates may lead to a decline in the stock's price[148](index=148&type=chunk) - Anti-takeover provisions, including a **9.8% ownership limit** and change-of-control purchase options for UHS in its leases, may delay or prevent a change in control, potentially limiting shareholder premiums[149](index=149&type=chunk)[151](index=151&type=chunk) [Unresolved Staff Comments](index=36&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - None[153](index=153&type=chunk) [Cybersecurity](index=38&type=section&id=Item%201C.%20Cybersecurity) The Trust's cybersecurity risk management is closely tied to UHS's programs, with oversight from the Audit Committee, and no material incidents were identified in fiscal year 2024 - The Trust utilizes certain of UHS's IT applications, mainly for financial data, and relies on UHS and third-party property managers for cybersecurity[154](index=154&type=chunk) - UHS has implemented a cybersecurity risk management program that includes bi-annual assessments, annual penetration tests, and an incident response process[156](index=156&type=chunk)[157](index=157&type=chunk) - The Audit Committee of the Board of Trustees is responsible for the oversight of risks from cybersecurity threats[161](index=161&type=chunk) - During fiscal year 2024, no risks from cybersecurity threats were identified that have materially affected or are reasonably likely to materially affect the company[160](index=160&type=chunk) [Properties](index=41&type=section&id=Item%202.%20Properties) This section provides a detailed overview of the Trust's property portfolio, including hospitals and significant medical office buildings, with data on occupancy rates, lease revenues, and lease terms Hospital Facility Occupancy and Lease Details (2024) | Hospital Facility Name | Type | Beds | 2024 Avg Occupancy | Minimum Lease Revenue (2024) | Lease Term End | | :--- | :--- | :--- | :--- | :--- | :--- | | Aiken Regional / Aurora Pavilion | Acute/Behavioral | 273 | 59% | $4,164,000 | 2033 | | McAllen Medical Center | Acute Care | 370 | 53% | $5,485,000 | 2026 | | Wellington Regional Medical Center | Acute Care | 155 | 74% | $6,643,000 | 2026 | | Canyon Creek Behavioral Health | Behavioral | 102 | 48% | $1,885,000 | 2033 | | Clive Behavioral Health | Behavioral | 100 | 51% | $3,348,000 | 2040 | - In connection with lease renewals executed during 2024, the weighted-average rental rates increased by approximately **3%** compared to the expired leases[169](index=169&type=chunk)[215](index=215&type=chunk) - The average effective annual rental per square foot for all occupied properties on a combined basis was **$30.03 in 2024**, compared to $29.21 in 2023[176](index=176&type=chunk) Lease Expirations by Annual Rental Value | Year | Annual Rentals of Expiring Leases | Percentage of Total | | :--- | :--- | :--- | | 2025 | $10,657,323 (Other) + $1,417,832 (Unconsolidated) | 11% | | 2026 | $15,235,518 (Hospital) + $10,916,853 (Other) + $2,789,451 (Unconsolidated) | 27% | | 2027 | $13,125,596 (Other) + $353,637 (Unconsolidated) | 12% | | 2028 | $6,189,677 (Other) + $586,541 (Unconsolidated) | 6% | | 2029 | $10,801,361 (Other) + $633,506 (Unconsolidated) | 11% | | Thereafter | $3,347,556 (Hospital) + ... | 33% | [Legal Proceedings](index=48&type=section&id=Item%203.%20Legal%20Proceedings) The company reports no legal proceedings - None[182](index=182&type=chunk) [Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[182](index=182&type=chunk) [Part II](index=48&type=section&id=PART%20II) This section details UHT's market performance, financial condition, results of operations, liquidity, capital resources, market risk, and critical accounting policies [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=48&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) UHT shares trade on NYSE, with quarterly dividends intended to maintain REIT status, underperforming benchmarks - The Trust's shares are listed on the New York Stock Exchange under the symbol **UHT**[183](index=183&type=chunk) - As of January 31, 2025, there were approximately **234 shareholders of record**[184](index=184&type=chunk) Cumulative Total Return Comparison (2019-2024) | Company / Index | Dec 2019 (Base) | Dec 2024 (End) | | :--- | :--- | :--- | | Universal Health Realty Income Trust | $100 | $41.47 | | S&P 500 Index | $100 | $197.02 | | Peer Group | $100 | $135.55 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income and FFO increased in 2024, driven by new properties, with liquidity from an upsized credit facility despite higher interest expense [Results of Operations](index=60&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations-Results%20of%20Operations) For the year ended December 31, 2024, net income rose to $19.2 million and FFO increased to $47.9 million, driven by higher revenues from new properties and reduced expenses, partially offset by increased interest expense Financial Performance Summary (in thousands, except per share data) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Income | $19,234 | $15,400 | | Funds From Operations (FFO) | $47,873 | $44,570 | | FFO per Diluted Share | $3.46 | $3.23 | - The increase in net income was driven by: an increase of **$3.5 million** from various properties, a **$2.0 million reduction** in expenses at the Chicago property, and a **$232,000 gain** from a prior-year loss on divestiture, offset by a **$1.9 million increase** in interest expense[213](index=213&type=chunk) - Revenues increased by **$3.4 million (3.6%) in 2024**, mainly due to revenues from a newly constructed MOB in Reno and an MOB acquired in McAllen in 2023[209](index=209&type=chunk) - Interest expense increased by **$1.9 million in 2024**, primarily due to higher average borrowing rates (**6.78% vs 6.64%**) and higher average outstanding borrowings (**$336.9 million vs $309.3 million**) on the revolving credit facility[217](index=217&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations-Liquidity%20and%20Capital%20Resources) The Trust's liquidity is primarily sourced from operating activities, which generated $46.9 million in net cash for 2024, and is supported by a recently amended and upsized $425 million credit facility Cash Flow Summary (in millions) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $46.9 | $42.9 | | Net Cash used in Investing Activities | ($13.9) | ($19.1) | | Net Cash used in Financing Activities | ($34.2) | ($23.2) | - In September 2024, the credit agreement was amended to increase borrowing capacity to **$425 million** (from $375 million) and extend the maturity date to September 2028[233](index=233&type=chunk)[398](index=398&type=chunk) - As of December 31, 2024, the Trust had **$348.9 million of outstanding borrowings** under its credit facility and **$76.1 million of available borrowing capacity**[237](index=237&type=chunk)[402](index=402&type=chunk) Contractual Obligations Summary (as of Dec 31, 2024, in thousands) | Obligation | Total | Less than 1 Year | 2-3 years | 4-5 years | After 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Long-term debt-variable | $348,900 | $0 | $0 | $348,900 | $0 | | Long-term non-recourse debt-fixed | $19,512 | $939 | $1,227 | $1,333 | $16,013 | | Operating leases | $38,842 | $704 | $1,408 | $1,408 | $35,322 | | Total Contractual Obligations | $496,635 | $31,198 | $44,335 | $368,236 | $52,866 | [Critical Accounting Policies and Estimates](index=56&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations-Critical%20Accounting%20Policies%20and%20Estimates) Management identifies several accounting policies as critical due to the significant judgments and estimates required, including purchase accounting for real estate acquisitions, asset impairment assessments, and accounting for financing assets - Property acquisitions are accounted for as asset acquisitions, requiring capitalization of costs and allocation of the purchase price to tangible assets (land, building) and intangible assets (in-place leases) based on fair value[202](index=202&type=chunk)[329](index=329&type=chunk) - The company reviews properties for impairment when indicators exist, comparing the carrying value to an estimate of future undiscounted net cash flows, which is highly subjective and based on assumptions about occupancy, rental rates, and capital needs[205](index=205&type=chunk)[337](index=337&type=chunk) - The assessment of the carrying value of net real estate investments was identified as a Critical Audit Matter by the independent auditor due to the high degree of subjective and complex judgment involved[306](index=306&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=71&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate fluctuations on variable-rate debt, mitigated by $165 million in swaps - The company uses interest rate swaps to hedge against cash flow exposure from variable interest rates on its debt, with active swaps totaling a notional amount of **$165 million** as of year-end 2024[246](index=246&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[255](index=255&type=chunk) - In October 2024, the company entered into a new **$85 million interest rate swap** at a fixed rate of **3.2725%**, maturing in 2028, to replace two swaps that expired in September 2024[246](index=246&type=chunk)[411](index=411&type=chunk) - Based on variable rate debt outstanding at December 31, 2024, and giving effect to the interest rate swaps, each **1% change in interest rates** would impact net income by approximately **$1.8 million**[257](index=257&type=chunk) [Financial Statements and Supplementary Data](index=73&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Consolidated financial statements for 2024, with KPMG's unqualified opinion, show increased net income and key notes [Report of Independent Registered Public Accounting Firm](index=87&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data-Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG LLP issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal controls, identifying the assessment of real estate investments as a critical audit matter - The auditor, KPMG LLP, expressed an unqualified opinion, stating the financial statements present fairly, in all material respects, the financial position of the company[300](index=300&type=chunk) - KPMG also issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2024[267](index=267&type=chunk)[301](index=301&type=chunk) - The assessment of the carrying value of net real estate investments was identified as a critical audit matter, involving complex and subjective auditor judgment regarding impairment indicators and cash flow assumptions[306](index=306&type=chunk) [Consolidated Financial Statements](index=89&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data-Consolidated%20Financial%20Statements) The consolidated financial statements present the Trust's financial position and performance, showing total assets of $580.9 million, total equity of $179.5 million, total revenues of $99.0 million, and net income of $19.2 million for 2024 Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Net Real Estate Investments and Financing receivable | $508,732 | $527,074 | | Total Assets | $580,862 | $596,369 | | Line of credit borrowings | $348,900 | $326,600 | | Total Liabilities | $401,321 | $395,435 | | Total Equity | $179,541 | $200,934 | Consolidated Statement of Income Highlights (in thousands) | Account | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Total Revenues | $99,011 | $95,575 | $90,625 | | Net Income | $19,234 | $15,400 | $21,102 | | Diluted EPS | $1.39 | $1.11 | $1.53 | Consolidated Statement of Cash Flows Highlights (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $46,911 | $42,939 | | Net cash used in investing activities | ($13,876) | ($19,110) | | Net cash used in Financing Activities | ($34,150) | ($23,231) | | Dividends paid | ($40,394) | ($39,765) | [Notes to the Consolidated Financial Statements](index=94&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data-Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide essential context to the financial statements, detailing the significant relationship with UHS, lease accounting, debt instruments, and summarized financials for unconsolidated joint ventures - The aggregate revenues from UHS-related tenants comprised approximately **40% of consolidated revenue in 2024**, with advisory fees paid to a UHS subsidiary amounting to **$5.5 million** (Note 2)[359](index=359&type=chunk)[371](index=371&type=chunk) - As of December 31, 2024, minimum future base rents from non-cancelable operating leases total **$400.3 million** (Note 4)[390](index=390&type=chunk) - The credit facility was amended in September 2024 to increase capacity to **$425 million** and extend maturity to 2028, with **$348.9 million** outstanding as of year-end (Note 5)[398](index=398&type=chunk)[402](index=402&type=chunk) - The Trust has investments in four unconsolidated LLCs/LPs accounted for via the equity method, with their combined net income being **$2.6 million in 2024**, and the Trust's share being **$1.3 million** (Note 8)[427](index=427&type=chunk)[428](index=428&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=75&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[259](index=259&type=chunk) [Controls and Procedures](index=75&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2024, with no material changes to internal control over financial reporting, and KPMG LLP issued an unqualified opinion on internal controls - The CEO and CFO concluded that the Trust's disclosure controls and procedures were effective as of December 31, 2024[260](index=260&type=chunk) - Management concluded that the company maintained effective internal control over financial reporting as of December 31, 2024, based on the COSO framework[264](index=264&type=chunk) - The independent auditor, KPMG LLP, issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2024[267](index=267&type=chunk) [Other Information](index=78&type=section&id=Item%209B.%20Other%20Information) The company reports that none of its Trustees or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fourth quarter of 2024 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by Trustees or officers during the quarter ended December 31, 2024[274](index=274&type=chunk) [Part III](index=79&type=section&id=PART%20III) Part III incorporates governance, compensation, and related party information from the 2025 proxy statement [Directors, Executive Officers and Corporate Governance](index=79&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding the company's directors, executive officers, and corporate governance practices is incorporated by reference from its 2025 proxy statement - Information is incorporated by reference from the registrant's definitive proxy statement for the 2025 Annual Meeting of Shareholders[9](index=9&type=chunk)[278](index=278&type=chunk) [Executive Compensation](index=79&type=section&id=Item%2011.%20Executive%20Compensation) Details concerning executive compensation are incorporated by reference from the company's 2025 proxy statement - Information is incorporated by reference from the registrant's definitive proxy statement for the 2025 Annual Meeting of Shareholders[9](index=9&type=chunk)[279](index=279&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=79&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership by certain beneficial owners and management is incorporated by reference from the company's 2025 proxy statement - Information is incorporated by reference from the registrant's definitive proxy statement for the 2025 Annual Meeting of Shareholders[9](index=9&type=chunk)[280](index=280&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=79&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Disclosures about certain relationships, related party transactions, and director independence are incorporated by reference from the company's 2025 proxy statement - Information is incorporated by reference from the registrant's definitive proxy statement for the 2025 Annual Meeting of Shareholders[9](index=9&type=chunk)[281](index=281&type=chunk) [Principal Accountant Fees and Services](index=79&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding fees paid to and services provided by the principal independent registered public accounting firm is incorporated by reference from the company's 2025 proxy statement - Information is incorporated by reference from the registrant's definitive proxy statement for the 2025 Annual Meeting of Shareholders[9](index=9&type=chunk)[282](index=282&type=chunk) [Part IV](index=80&type=section&id=PART%20IV) This section lists exhibits, financial statement schedules, and confirms the absence of a Form 10-K summary [Exhibits, Financial Statement Schedules](index=80&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Form 10-K, including financial statements and various exhibits - The list of exhibits includes key governing documents, material contracts, and required certifications[286](index=286&type=chunk)[289](index=289&type=chunk)[291](index=291&type=chunk) [Form 10-K Summary](index=84&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no Form 10-K summary - None[292](index=292&type=chunk)
UNIVERSAL HEALTH REALTY INCOME TRUST REPORTS 2024 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS
Prnewswire· 2025-02-26 21:40
Consolidated Results of Operations - Three-Month Periods Ended December 31, 2024 and 2023: KING OF PRUSSIA, Pa., Feb. 26, 2025 /PRNewswire/ -- Universal Health Realty Income Trust (NYSE:UHT) announced today that for the three-month period ended December 31, 2024, net income was $4.7 million, or $.34 per diluted share, as compared to $3.6 million, or $.26 per diluted share, during the fourth quarter of 2023. As reflected on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), ...
Universal Health Realty me Trust(UHT) - 2024 Q3 - Quarterly Results
2024-10-24 20:20
[Universal Health Realty Income Trust Q3 2024 Earnings Release](index=1&type=section&id=Universal%20Health%20Realty%20Income%20Trust%20Q3%202024%20Earnings%20Release) This report details Universal Health Realty Income Trust's financial and operational performance for Q3 and the first nine months of 2024 [Financial Performance](index=1&type=section&id=Financial%20Performance) The Trust achieved year-over-year growth in net income and FFO for Q3 and YTD 2024, driven by property income and expense reductions, despite higher interest costs [Third Quarter 2024 Results (Three-Month Period)](index=1&type=section&id=Consolidated%20Results%20of%20Operations%20-%20Three-Month%20Periods%20Ended%20September%2030%2C%202024%20and%202023%3A) The third quarter of 2024 saw increases in net income, diluted EPS, FFO, and FFO per diluted share compared to the prior year Q3 2024 vs. Q3 2023 Financial Highlights (Millions) | Metric | Q3 2024 (Millions) | Q3 2023 (Millions) | Change (Millions) | | :--- | :--- | :--- | :--- | | Net Income | $4.0 | $3.9 | +$0.1 | | Diluted EPS | $0.29 | $0.28 | +$0.01 | | FFO | $11.3 | $11.2 | +$0.1 | | FFO per Diluted Share | $0.82 | $0.81 | +$0.01 | - The increase in Q3 net income was primarily driven by a **$451,000** net increase in income from various properties, partially offset by a **$326,000** increase in interest expense[1](index=1&type=chunk) [Year-to-Date 2024 Results (Nine-Month Period)](index=1&type=section&id=Consolidated%20Results%20of%20Operations%20-%20Nine-Month%20Periods%20Ended%20September%2030%2C%202024%20and%202023%3A) The first nine months of 2024 demonstrated substantial growth in net income and FFO, driven by property income and reduced Chicago property expenses Nine Months 2024 vs. 2023 Financial Highlights (Millions) | Metric | Nine Months 2024 (Millions) | Nine Months 2023 (Millions) | Change (Millions) | | :--- | :--- | :--- | :--- | | Net Income | $14.6 | $11.8 | +$2.8 | | Diluted EPS | $1.05 | $0.85 | +$0.20 | | FFO | $36.1 | $33.2 | +$2.9 | | FFO per Diluted Share | $2.61 | $2.40 | +$0.21 | - The **$2.8 million** increase in nine-month net income resulted from a **$2.5 million** increase in income from various properties and a **$1.9 million** reduction in expenses related to the Chicago property, partially offset by a **$1.6 million** increase in interest expense[2](index=2&type=chunk)[3](index=3&type=chunk) [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) The Trust declared and paid a third-quarter dividend of **$0.73 per share**, reflecting an increase from the prior year - A third-quarter dividend of **$0.73 per share**, totaling **$10.1 million**, was declared on September 4, 2024, and paid on September 30, 2024[4](index=4&type=chunk) Dividend Per Share Comparison ($) | Period | Dividend per Share ($) | | :--- | :--- | | Q3 2024 | $0.730 | | Q3 2023 | $0.720 | | Nine Months 2024 | $2.185 | | Nine Months 2023 | $2.155 | [Capital Structure and Liquidity](index=2&type=section&id=Capital%20Structure%20and%20Liquidity) The Trust enhanced financial flexibility by upsizing its credit facility to **$425 million** and extending maturity to 2028, while also entering an **$85 million** interest rate swap to manage risk [Capital Resources](index=2&type=section&id=Capital%20Resources%20Information%3A) The company amended its credit agreement, increasing borrowing capacity to **$425 million** and extending maturity, with **$77.2 million** available as of September 30, 2024 - On September 30, 2024, the company amended its credit agreement, increasing borrowing capacity to **$425 million** (from **$375 million**) and extending the maturity date to September 30, 2028, with an option for two additional six-month extensions[5](index=5&type=chunk) - As of September 30, 2024, the Trust had **$347.8 million** of borrowings outstanding under its revolving credit agreement, with **$77.2 million** of available borrowing capacity[5](index=5&type=chunk) [Financial Instruments](index=2&type=section&id=Financial%20Instruments%3A) The Trust entered an **$85 million** interest rate swap agreement with a fixed rate of **3.2725%** to hedge cash flows through September 2028 - In October 2024, the Trust entered into an interest rate swap agreement on a notional amount of **$85 million** to hedge cash flows[8](index=8&type=chunk) - The swap has a fixed interest rate of **3.2725%**, is effective from October 2, 2024, to September 30, 2028, and replaced two expired agreements[8](index=8&type=chunk)[9](index=9&type=chunk) [Portfolio and Operational Updates](index=2&type=section&id=Portfolio%20and%20Operational%20Updates) The Trust completed Sierra Medical Plaza I construction, secured a **ten-year master lease** for **68%** of its space, and managed other asset dispositions and marketing efforts [Project Development (Sierra Medical Plaza I)](index=2&type=section&id=Sierra%20Medical%20Plaza%20I%3A) Construction of Sierra Medical Plaza I, an **86,000 sq. ft.** medical office building, is substantially complete, with **68%** leased under a **ten-year master lease** - Construction was substantially completed in March 2023 on Sierra Medical Plaza I, an **86,000 sq. ft.** medical office building (MOB) in Reno, Nevada[6](index=6&type=chunk) - A **ten-year** master flex lease commenced in March 2023, covering approximately **68%** of the MOB's rentable space at an initial minimum annual rent of **$1.3 million**[6](index=6&type=chunk) - The total estimated cost for the MOB is approximately **$35 million**, with about **$30 million** incurred as of September 30, 2024[6](index=6&type=chunk) [Asset Dispositions and Management](index=2&type=section&id=Vacant%20Land%2FSpecialty%20Facility%3A) Demolition of the Chicago specialty hospital is complete, a Corpus Christi facility was sold, and marketing continues for vacant properties in Chicago and Evansville - Demolition of the former specialty hospital in Chicago was completed in 2023 at an aggregate cost of approximately **$1.5 million**[7](index=7&type=chunk) - In December 2023, the vacant specialty facility in Corpus Christi, Texas was sold[7](index=7&type=chunk) - The Trust continues to market vacant properties located in Chicago, Illinois, and Evansville, Indiana[7](index=7&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The consolidated financial statements present the Trust's financial position and performance, including income statements, balance sheets, and FFO reconciliations [Consolidated Statements of Income](index=5&type=section&id=Universal%20Health%20Realty%20Income%20Trust%20Consolidated%20Statements%20of%20Income) The income statement summarizes total revenues, expenses, net income, and diluted EPS for Q3 and the nine-month periods of 2024 and 2023 Income Statement Summary (Thousands) | Account | Q3 2024 (Thousands) | Q3 2023 (Thousands) | Nine Months 2024 (Thousands) | Nine Months 2023 (Thousands) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $24,494 | $24,223 | $74,369 | $71,255 | | Total Expenses | $20,497 | $20,351 | $60,254 | $59,448 | | Net Income | $3,997 | $3,872 | $14,573 | $11,807 | | Diluted EPS | $0.29 | $0.28 | $1.05 | $0.85 | [Consolidated Balance Sheets](index=8&type=section&id=Universal%20Health%20Realty%20Income%20Trust%20Consolidated%20Balance%20Sheets) The balance sheet provides a snapshot of the Trust's financial position, detailing assets, liabilities, and equity as of September 30, 2024 Balance Sheet Summary (Thousands) | Account | Sep 30, 2024 (Thousands) | Dec 31, 2023 (Thousands) | | :--- | :--- | :--- | | Net Real Estate Investments | $430,165 | $443,795 | | Total Assets | $584,330 | $596,369 | | Line of credit borrowings | $347,750 | $326,600 | | Total Liabilities | $402,691 | $395,435 | | Total Equity | $181,639 | $200,934 | [Non-GAAP Reconciliations (FFO)](index=6&type=section&id=Schedule%20of%20Non-GAAP%20Supplemental%20Information) This section provides reconciliations of net income to Funds From Operations (FFO) for both the third quarter and nine-month periods Q3 FFO Reconciliation (Thousands) | Account | Q3 2024 (Thousands) | Q3 2023 (Thousands) | | :--- | :--- | :--- | | Net Income | $3,997 | $3,872 | | Plus: Depreciation & Amortization | $7,320 | $7,321 | | **FFO** | **$11,317** | **$11,193** | Nine Months FFO Reconciliation (Thousands) | Account | Nine Months 2024 (Thousands) | Nine Months 2023 (Thousands) | | :--- | :--- | :--- | | Net Income | $14,573 | $11,807 | | Plus: Depreciation & Amortization | $21,542 | $21,379 | | **FFO** | **$36,115** | **$33,186** | [Disclosures](index=3&type=section&id=General%20Information%2C%20Forward-Looking%20Statements%20and%20Risk%20Factors%20and%20Non-GAAP%20Financial%20Measures%3A) This section provides an overview of the Trust's operations as a REIT, outlines forward-looking statement disclaimers and associated risks, and explains the use of non-GAAP financial measures [About the Company](index=3&type=section&id=About%20the%20Company) Universal Health Realty Income Trust operates as a REIT, investing in **76 healthcare facilities** across **21 states** - Universal Health Realty Income Trust is a REIT that invests in **seventy-six properties** located in **twenty-one states**, including acute care hospitals, behavioral health hospitals, specialty facilities, and medical office buildings[9](index=9&type=chunk) [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The press release contains forward-looking statements, warning that future results could be materially impacted by various operational and market risks - The press release contains forward-looking statements and warns that future results could be materially impacted by various factors, including staffing shortages, wage expense increases for tenants, government regulation of the healthcare industry, declining patient volumes, unfavorable payer mix from macroeconomic conditions, and increased borrowing costs due to rising interest rates[9](index=9&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP financial measures, such as Funds from Operations (FFO), to provide investors with additional insights into operating performance - The company uses non-GAAP financial measures such as Funds from Operations (FFO) and adjusted net income, which it believes are helpful to investors for measuring operating performance[9](index=9&type=chunk) - FFO is computed in accordance with standards from the National Association of Real Estate Investment Trusts (NAREIT) and is not an alternative to net income or cash flow from operations under GAAP[9](index=9&type=chunk)[10](index=10&type=chunk)
UNIVERSAL HEALTH REALTY INCOME TRUST REPORTS 2024 THIRD QUARTER FINANCIAL RESULTS
Prnewswire· 2024-10-24 20:15
Consolidated Results of Operations - Three-Month Periods Ended September 30, 2024 and 2023:KING OF PRUSSIA, Pa., Oct. 24, 2024 /PRNewswire/ -- Universal Health Realty Income Trust (NYSE:UHT) announced today that for the three-month period ended September 30, 2024, net income was $4.0 million, or $.29 per diluted share, as compared to $3.9 million, or $.28 per diluted share, during the third quarter of 2023.The increase in our net income of $125,000, or $.01 per diluted share, during the three-month period e ...
UNIVERSAL HEALTH REALTY INCOME TRUST ANNOUNCES DIVIDEND
Prnewswire· 2024-09-04 20:15
KING OF PRUSSIA, Pa., Sept. 4, 2024 /PRNewswire/ -- Universal Health Realty Income Trust (NYSE:UHT) announced today that its Board of Trustees voted to pay a dividend of $.73 per share on September 30, 2024 to shareholders of record as of September 16, 2024. Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human servicerelated facilities including acute care hospitals, behavioral healthcare facilities, rehabilitation hospitals, subacute care facilities, surgery ...
Universal Health Realty me Trust(UHT) - 2024 Q2 - Quarterly Results
2024-07-24 20:25
[Executive Summary](index=1&type=section&id=Executive%20Summary) Universal Health Realty Income Trust achieved significant Q2 2024 financial improvements, with net income up $1.8 million to $5.3 million and FFO increasing by $1.8 million to $12.4 million [2024 Second Quarter Financial Highlights](index=1&type=section&id=2024%20Second%20Quarter%20Financial%20Highlights) The company reported strong Q2 2024 financial performance, with net income rising to $5.3 million and FFO increasing to $12.4 million 2024 Second Quarter Financial Highlights | Metric | Q2 2024 | Q2 2023 | Change | | :------------------- | :------ | :------ | :----- | | Net Income | $5.3M | $3.5M | +$1.8M | | Diluted EPS | $0.38 | $0.25 | +$0.13 | | FFO | $12.4M | $10.6M | +$1.8M | | Diluted FFO per Share | $0.90 | $0.77 | +$0.13 | [Consolidated Results of Operations](index=1&type=section&id=Consolidated%20Results%20of%20Operations) This section details the company's financial performance for the three and six-month periods ended June 30, 2024 and 2023 [Three-Month Periods Ended June 30, 2024 and 2023](index=1&type=section&id=Consolidated%20Results%20of%20Operations%20-%20Three-Month%20Periods%20Ended%20June%2030%2C%202024%20and%202023) For the second quarter of 2024, the company experienced a substantial increase in net income and FFO, driven by reduced Chicago property expenses and increased property income [Net Income Analysis](index=1&type=section&id=Net%20Income%20Analysis%20-%20Three%20Months) This analysis details the drivers behind the increase in net income for the three-month period ended June 30, 2024 Net Income and EPS (Three Months Ended June 30) | Metric | Q2 2024 | Q2 2023 | Change | | :------------------- | :------ | :------ | :----- | | Net Income | $5.276M | $3.476M | +$1.8M | | Diluted EPS | $0.38 | $0.25 | +$0.13 | - **Drivers of Net Income Increase (Q2 2024 vs. Q2 2023):** * Reduction in Chicago property expenses: **$1.5 million**, including **$862,000** from demolition expenses incurred in Q2 2023 and **$563,000** from a property tax reduction recorded in Q2 2024 primarily related to prior periods[3](index=3&type=chunk) * Aggregate net increase in income generated at various properties: **$706,000**[3](index=3&type=chunk) * Partially offset by an increase in interest expense: **$404,000**, due primarily to increases in average borrowing rate and outstanding borrowings[3](index=3&type=chunk) [Funds From Operations (FFO) Analysis](index=1&type=section&id=Funds%20From%20Operations%20%28FFO%29%20Analysis%20-%20Three%20Months) This analysis focuses on the factors contributing to the increase in FFO for the three-month period ended June 30, 2024 FFO and FFO per Diluted Share (Three Months Ended June 30) | Metric | Q2 2024 | Q2 2023 | Change | | :------------------- | :------ | :------ | :----- | | FFO | $12.4M | $10.6M | +$1.8M | | Diluted FFO per Share | $0.90 | $0.77 | +$0.13 | - **Driver of FFO Increase (Q2 2024 vs. Q2 2023):** * Primarily due to the above-mentioned increase in net income[4](index=4&type=chunk) [Six-Month Periods Ended June 30, 2024 and 2023](index=1&type=section&id=Consolidated%20Results%20of%20Operations%20-%20Six-Month%20Periods%20Ended%20June%2030%2C%202024%20and%202023) For the first six months of 2024, the company reported a solid increase in net income and FFO, driven by increased property income and reduced Chicago property expenses [Net Income Analysis](index=1&type=section&id=Net%20Income%20Analysis%20-%20Six%20Months) This analysis details the drivers behind the increase in net income for the six-month period ended June 30, 2024 Net Income and EPS (Six Months Ended June 30) | Metric | H1 2024 | H1 2023 | Change | | :------------------- | :------ | :------ | :----- | | Net Income | $10.6M | $7.9M | +$2.6M | | Diluted EPS | $0.76 | $0.57 | +$0.19 | - **Drivers of Net Income Increase (H1 2024 vs. H1 2023):** * Aggregate net increase in income generated at various properties: **$2.1 million**[6](index=6&type=chunk)[7](index=7&type=chunk) * Reduction in Chicago property expenses: **$1.8 million**, including **$1.1 million** from demolition expenses incurred in H1 2023 and **$563,000** from a property tax reduction recorded in H1 2024 primarily related to prior periods[6](index=6&type=chunk)[7](index=7&type=chunk) * Partially offset by an increase in interest expense: **$1.3 million**, due primarily to increases in average borrowing rate and outstanding borrowings[6](index=6&type=chunk)[7](index=7&type=chunk) [Funds From Operations (FFO) Analysis](index=2&type=section&id=Funds%20From%20Operations%20%28FFO%29%20Analysis%20-%20Six%20Months) This analysis focuses on the factors contributing to the increase in FFO for the six-month period ended June 30, 2024 FFO and FFO per Diluted Share (Six Months Ended June 30) | Metric | H1 2024 | H1 2023 | Change | | :------------------- | :------ | :------ | :----- | | FFO | $24.8M | $22.0M | +$2.8M | | Diluted FFO per Share | $1.79 | $1.59 | +$0.20 | - **Drivers of FFO Increase (H1 2024 vs. H1 2023):** * Primarily due to the above-mentioned increase in net income[8](index=8&type=chunk) * Increase in depreciation and amortization expense[8](index=8&type=chunk) [Key Financial and Operational Updates](index=2&type=section&id=Key%20Financial%20and%20Operational%20Updates) This section provides essential updates on the company's dividends, capital resources, and property portfolio developments [Dividend Information](index=2&type=section&id=Dividend%20Information) The company declared and paid a second-quarter dividend of $0.73 per share, totaling $10.1 million Q2 2024 Dividend | Metric | Value | | :---------------- | :------ | | Dividend per Share | $0.73 | | Aggregate Dividend | $10.1M | | Declaration Date | June 5, 2024 | | Payment Date | June 28, 2024 | [Capital Resources Information](index=2&type=section&id=Capital%20Resources%20Information) As of June 30, 2024, the company had $342.9 million in outstanding borrowings against its $375 million revolving credit agreement, leaving $32.1 million in available borrowing capacity Borrowing Capacity (as of June 30, 2024) | Metric | Value | | :-------------------------------- | :-------- | | Revolving Credit Agreement Limit | $375M | | Borrowings Outstanding | $342.9M | | Available Borrowing Capacity (net) | $32.1M | [Property Updates](index=2&type=section&id=Property%20Updates) The company provided updates on its property portfolio, including the substantial completion and leasing of Sierra Medical Plaza I and the status of its vacant properties in Chicago and Corpus Christi [Sierra Medical Plaza I](index=2&type=section&id=Sierra%20Medical%20Plaza%20I) This section details the construction, leasing, and aggregate cost of the Sierra Medical Plaza I development - **Construction and Lease Details:** * Construction was substantially completed in March 2023 for an 86,000 square foot Medical Office Building (MOB) in Reno, Nevada[11](index=11&type=chunk) * A master flex lease agreement commenced in March 2023 with a ten-year term, covering approximately **68%** of the rentable square feet at an initial minimum rent of **$1.3 million** annually, plus common area maintenance expenses, subject to reduction based on third-party leases[11](index=11&type=chunk) Aggregate Cost of Sierra Medical Plaza I | Metric | Value | | :---------------- | :------ | | Estimated Total Cost | ~$35M | | Incurred as of June 30, 2024 | ~$30M | [Vacant Land/Specialty Facility](index=2&type=section&id=Vacant%20Land%2FSpecialty%20Facility) This section provides updates on the demolition of the Chicago facility, the sale of the Corpus Christi facility, and future operating expenses for vacant properties - **Demolition and Sale Status:** * Demolition of the former specialty hospital in Chicago, Illinois, was completed during 2023, with aggregate demolition expenses of approximately **$1.5 million**[12](index=12&type=chunk) * The vacant specialty facility in Corpus Christi, Texas, was sold in December 2023[12](index=12&type=chunk) - **Future Operating Expenses:** * The company continues to market vacant properties in Chicago, Illinois, and Evansville, Indiana, and will incur future operating expenses for these properties until they are owned and unleased[13](index=13&type=chunk) [Company Overview and Disclosures](index=2&type=section&id=Company%20Overview%20and%20Disclosures) This section provides general company information, forward-looking statements, risk factors, and details on non-GAAP financial measures [General Information](index=2&type=section&id=General%20Information) Universal Health Realty Income Trust is a real estate investment trust (REIT) specializing in healthcare and human-service related facilities, with investments in 76 properties across 21 states - **Company Profile:** * Universal Health Realty Income Trust is a real estate investment trust (REIT)[14](index=14&type=chunk) * Invests in healthcare and human-service related facilities, including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments, and childcare centers[14](index=14&type=chunk) * Has investments or commitments in seventy-six properties located in twenty-one states[14](index=14&type=chunk) [Forward-Looking Statements and Risk Factors](index=2&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The report contains forward-looking statements subject to various risks, including staffing shortages, regulatory changes, declining patient volumes due to macroeconomic conditions, supply disruptions, and increased interest rates, which could materially impact future financial results - **Forward-Looking Statements Disclaimer:** * This press release contains forward-looking statements based on current management expectations[15](index=15&type=chunk)[16](index=16&type=chunk) * Numerous factors, including those disclosed in SEC filings (Form 10-K, Form 10-Q), may cause actual results to differ materially from those anticipated[15](index=15&type=chunk)[16](index=16&type=chunk) * Readers should not place undue reliance on such statements, which reflect management's view only as of the date hereof, and the company undertakes no obligation to revise or update them[15](index=15&type=chunk)[16](index=16&type=chunk) - **Key Risk Factors:** * **Staffing Availability & Wage Expense:** Decreases in staffing and related increases to wage expense experienced by tenants due to nationwide shortages of nurses and other clinical/support staff[17](index=17&type=chunk)[18](index=18&type=chunk) * **Government & Administrative Regulation:** Impact of government and administrative regulation of the health care industry[17](index=17&type=chunk)[18](index=18&type=chunk) * **Macroeconomic Conditions:** Declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions (e.g., increases in uninsured/underinsured patients)[17](index=17&type=chunk)[18](index=18&type=chunk) * **Supply Disruptions:** Potential disruptions related to supplies required for tenants' employees and patients[17](index=17&type=chunk)[18](index=18&type=chunk) * **Interest Rate Increases:** Substantially increased borrowing costs and reduced ability to access capital markets on favorable terms; additional increases could have a significant unfavorable impact on future results and strategy[17](index=17&type=chunk)[18](index=18&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP financial measures like Adjusted Net Income and Funds From Operations (FFO) to provide investors with insights into operating performance, emphasizing that these measures are not substitutes for GAAP results and should be considered with caution - **Purpose of Non-GAAP Measures:** * Adjusted net income and adjusted net income per diluted share are considered helpful to investors as measures of operating performance[19](index=19&type=chunk) * These measures help neutralize the effect of material non-recurring or non-operational items[19](index=19&type=chunk) - **FFO Definition and Limitations:** * Funds from operations (FFO) is a widely recognized measure for Real Estate Investment Trusts (REITs), computed in accordance with NAREIT standards[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) * **Limitations:** FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered an alternative to net income, cash flow from operating activities, a measure of liquidity, or an indicator of funds available for cash needs (including distributions)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) * Investors are encouraged to use GAAP measures when evaluating financial performance, as non-GAAP measures are susceptible to varying calculations and may not be comparable to other similarly titled measures of other companies[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the company's consolidated financial statements, including income statements, balance sheets, and non-GAAP reconciliations [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the detailed consolidated income statements for the three and six months ended June 30, 2024 and 2023, outlining revenues, expenses, and net income Consolidated Statements of Income (For the Three and Six Months Ended June 30, 2024 and 2023) | | Three Months Ended | | | Six Months Ended | | | :------------------------------------------------- | :--- | :--- | :--- | :--- | :--- | | | June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | | **Revenues:** | | | | | | Lease revenue - UHS facilities | $ 8,454 | $ 8,236 | $ 17,118 | $ 16,023 | | Lease revenue - Non-related parties | 14,359 | 13,668 | 28,846 | 27,029 | | Other revenue - UHS facilities | 220 | 245 | 440 | 476 | | Other revenue - Non-related parties | 342 | 292 | 751 | 773 | | Interest income on financing leases - UHS facilities | 1,359 | 1,365 | 2,720 | 2,731 | | **Total Revenues** | **24,734** | **23,806** | **49,875** | **47,032** | | **Expenses:** | | | | | | Depreciation and amortization | 6,806 | 6,849 | 13,615 | 13,467 | | Advisory fees to UHS | 1,369 | 1,323 | 2,707 | 2,625 | | Other operating expenses | 6,975 | 8,250 | 14,506 | 15,771 | | **Total Expenses** | **15,150** | **16,422** | **30,828** | **31,863** | | Income before equity in income of unconsolidated LLCs and interest expense | 9,584 | 7,384 | 19,047 | 15,169 | | Equity in income of unconsolidated LLCs | 272 | 268 | 656 | 639 | | Interest expense, net | (4,580) | (4,176) | (9,127) | (7,873) | | **Net income** | **$ 5,276** | **$ 3,476** | **$ 10,576** | **$ 7,935** | | Basic earnings per share | $ 0.38 | $ 0.25 | $ 0.77 | $ 0.58 | | Diluted earnings per share | $ 0.38 | $ 0.25 | $ 0.76 | $ 0.57 | | Weighted average number of shares outstanding - Diluted | 13,832 | 13,809 | 13,828 | 13,806 | [Schedule of Non-GAAP Supplemental Information - Three Months](index=6&type=section&id=Schedule%20of%20Non-GAAP%20Supplemental%20Information%20-%20Three%20Months) This schedule provides the reconciliation of net income to Adjusted Net Income and Funds From Operations (FFO) for the three-month periods ended June 30, 2024 and 2023, in accordance with NAREIT standards Calculation of Adjusted Net Income (Three Months Ended June 30) | | June 30, 2024 | | | June 30, 2023 | | | :------------------------ | :--- | :--- | :--- | :--- | :--- | | | Amount | Per Diluted Share | Amount | Per Diluted Share | | Net income | $ 5,276 | $ 0.38 | $ 3,476 | $ 0.25 | | Adjustments | - | - | - | - | | Subtotal adjustments to net income | - | - | - | - | | Adjusted net income | $ 5,276 | $ 0.38 | $ 3,476 | $ 0.25 | Calculation of Funds From Operations ("FFO") (Three Months Ended June 30) | | June 30, 2024 | | | June 30, 2023 | | | :------------------------------------ | :--- | :--- | :--- | :--- | :--- | | | Amount | Per Diluted Share | Amount | Per Diluted Share | | Net income | $ 5,276 | $ 0.38 | $ 3,476 | $ 0.25 | | Plus: Depreciation and amortization expense: | | | | | | Consolidated investments | 6,806 | 0.50 | 6,849 | 0.50 | | Unconsolidated affiliates | 303 | 0.02 | 298 | 0.02 | | FFO | $ 12,385 | $ 0.90 | $ 10,623 | $ 0.77 | | Dividend paid per share | | $ 0.730 | | $ 0.720 | [Schedule of Non-GAAP Supplemental Information - Six Months](index=7&type=section&id=Schedule%20of%20Non-GAAP%20Supplemental%20Information%20-%20Six%20Months) This schedule details the reconciliation of net income to Adjusted Net Income and Funds From Operations (FFO) for the six-month periods ended June 30, 2024 and 2023, adhering to NAREIT guidelines Calculation of Adjusted Net Income (Six Months Ended June 30) | | June 30, 2024 | | | June 30, 2023 | | | :------------------------ | :--- | :--- | :--- | :--- | :--- | | | Amount | Per Diluted Share | Amount | Per Diluted Share | | Net income | $ 10,576 | $ 0.76 | $ 7,935 | $ 0.57 | | Adjustments | - | - | - | - | | Subtotal adjustments to net income | - | - | - | - | | Adjusted net income | $ 10,576 | $ 0.76 | $ 7,935 | $ 0.57 | Calculation of Funds From Operations ("FFO") (Six Months Ended June 30) | | June 30, 2024 | | | June 30, 2023 | | | :------------------------------------ | :--- | :--- | :--- | :--- | :--- | | | Amount | Per Diluted Share | Amount | Per Diluted Share | | Net income | $ 10,576 | $ 0.76 | $ 7,935 | $ 0.57 | | Plus: Depreciation and amortization expense: | | | | | | Consolidated investments | 13,615 | 0.99 | 13,467 | 0.98 | | Unconsolidated affiliates | 607 | 0.04 | 591 | 0.04 | | FFO | $ 24,798 | $ 1.79 | $ 21,993 | $ 1.59 | | Dividend paid per share | | $ 1.455 | | $ 1.435 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) This section presents the consolidated balance sheets as of June 30, 2024, and December 31, 2023, providing a snapshot of the company's assets, liabilities, and equity Consolidated Balance Sheets (As of June 30, 2024 and December 31, 2023) | | June 30, 2024 | December 31, 2023 | | :-------------------------------------------------------------------------------- | :--- | :--- | | **Assets:** | | | | Real Estate Investments: | | | | Buildings and improvements and construction in progress | $ 651,638 | $ 649,374 | | Accumulated depreciation | (274,622) | (262,449) | | Net Real Estate Investments (subtotal) | 377,016 | 386,925 | | Land | 56,870 | 56,870 | | **Net Real Estate Investments** | **433,886** | **443,795** | | Financing receivable from UHS | 83,043 | 83,279 | | **Net Real Estate Investments and Financing receivable** | **516,929** | **527,074** | | Investments in limited liability companies ("LLCs") | 14,328 | 9,102 | | Other Assets: | | | | Cash and cash equivalents | 5,577 | 8,212 | | Lease and other receivables from UHS | 6,816 | 6,180 | | Lease receivable - other | 7,905 | 8,166 | | Intangible assets (net) | 8,193 | 9,110 | | Right-of-use land assets, net | 10,932 | 10,946 | | Deferred charges, notes receivable and other assets, net | 15,871 | 17,579 | | **Total Assets** | **$ 586,551** | **$ 596,369** | | **Liabilities:** | | | | Line of credit borrowings | $ 342,900 | $ 326,600 | | Mortgage notes payable, non-recourse to us, net | 19,970 | 32,863 | | Accrued interest | 1,024 | 490 | | Accrued expenses and other liabilities | 10,145 | 13,500 | | Ground lease liabilities, net | 10,932 | 10,946 | | Tenant reserves, deposits and deferred and prepaid rents | 10,879 | 11,036 | | **Total Liabilities** | **395,850** | **395,435** | | **Equity:** | | | | Common shares | 138 | 138 | | Capital in excess of par value | 270,592 | 270,398 | | Cumulative net income | 836,637 | 826,061 | | Cumulative dividends | (923,107) | (902,975) | | Accumulated other comprehensive income | 6,441 | 7,312 | | **Total Equity** | **190,701** | **200,934** | | **Total Liabilities and Equity** | **$ 586,551** | **$ 596,369** |