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 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)

Consolidated Results - For the three-month period ended September 30, 2024, net income was $4.0 million, or $0.29 per diluted share, compared to $3.9 million, or $0.28 per diluted share in Q3 2023, reflecting an increase of $125,000, or $0.01 per diluted share [1] - The increase in net income was driven by a $451,000 increase in income from various properties, partially offset by a $326,000 increase in interest expense due to higher average borrowings and borrowing rates [1] - For the nine-month period ended September 30, 2024, net income was $14.6 million, or $1.05 per diluted share, compared to $11.8 million, or $0.85 per diluted share in the same period of 2023 [2] Funds from Operations (FFO) - FFO for Q3 2024 was $11.3 million, or $0.82 per diluted share, compared to $11.2 million, or $0.81 per diluted share in Q3 2023, reflecting an increase of $124,000, or $0.01 per diluted share [2] - For the nine-month period ended September 30, 2024, FFO was $36.1 million, or $2.61 per diluted share, compared to $33.2 million, or $2.40 per diluted share in the same period of 2023, an increase of $2.9 million, or $0.21 per diluted share [4] Dividend Information - A dividend of $0.73 per share, totaling $10.1 million, was declared on September 4, 2024, and paid on September 30, 2024 [4] Capital Resources - As of September 30, 2024, the company entered into a second amended and restated credit agreement, increasing borrowing capacity to $425 million from $375 million and extending the maturity date to September 30, 2028 [4] - The company had $347.8 million of borrowings outstanding under the revolving credit agreement and $77.2 million of available borrowing capacity as of that date [5] Property Developments - Construction of Sierra Medical Plaza I, an 86,000 square foot medical office building in Reno, Nevada, was substantially completed in March 2023, with an estimated total cost of approximately $35 million [5] - The master flex lease agreement for this building commenced in March 2023, covering about 68% of the rentable square feet at an initial minimum rent of $1.3 million annually [5] Financial Instruments - In October 2024, the company entered into an interest rate swap agreement with a notional amount of $85 million at a fixed interest rate of 3.2725%, effective from October 2, 2024, and maturing on September 30, 2028 [6]

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 ...

[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** |

Financial Performance - The company reported a net income of $5.3 million, or $0.38 per diluted share, for the second quarter of 2024, compared to $3.5 million, or $0.25 per diluted share, in the same quarter of 2023, reflecting an increase of $1.8 million, or $0.13 per diluted share [6][18] - For the six-month period ended June 30, 2024, net income was $10.6 million, or $0.76 per diluted share, compared to $7.9 million, or $0.57 per diluted share during the first six months of 2023, indicating a growth of $2.6 million, or $0.19 per diluted share [2][19] Revenue and Expenses - Total revenues for the second quarter of 2024 were $24.7 million, up from $23.8 million in the second quarter of 2023, driven by increased lease revenue from both UHS facilities and non-related parties [13] - The company experienced a reduction in expenses related to its Chicago property, contributing to the increase in net income, with a decrease of $1.5 million in demolition expenses and a property tax reduction of $563,000 [19] Funds from Operations (FFO) - The FFO for the second quarter of 2024 was $12.4 million, or $0.90 per diluted share, compared to $10.6 million, or $0.77 per diluted share in the second quarter of 2023, marking an increase of $1.8 million, or $0.13 per diluted share [18] - For the first six months of 2024, FFO was $24.8 million, or $1.79 per diluted share, compared to $22.0 million, or $1.59 per diluted share during the same period in 2023, reflecting an increase of $2.8 million, or $0.20 per diluted share [7] Dividend Information - A dividend of $0.73 per share, totaling $10.1 million, was declared on June 5, 2024, and paid on June 28, 2024 [20] Capital Resources - As of June 30, 2024, the company had $342.9 million in borrowings outstanding under its $375 million revolving credit agreement, with $32.1 million of available borrowing capacity [3]

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human service- related facilities including acute care hospitals, behavioral healthcare facilities, rehabilitation hospitals, sub- acute care facilities, surgery centers, childcare centers, and medical office buildings. The Trust has seventy-six investments in twenty-one states. SOURCE Universal Health Realty Income Trust KING OF PRUSSIA, Pa., June 5, 2024 /PRNewswire/ -- Universal Health Realty Income Trust (NYS ...

Real Estate Investments - As of May 1, 2024, the company has 76 real estate investments or commitments located in 21 states, including 6 hospital facilities and 60 medical/office buildings[96]. Revenue and Income - Approximately 41% of the company's consolidated revenues for the three-month period ended March 31, 2024, were derived from UHS, highlighting a significant dependency on this operator[101]. - Net income for the three-month period ended March 31, 2024, was $5.3 million, an increase of $841,000 compared to $4.5 million in the same period of 2023[110]. - Revenues increased by $1.9 million, or 8.2%, to $25.1 million during the first quarter of 2024, up from $23.2 million in the first quarter of 2023[110]. - Funds From Operations (FFO) increased by $1.0 million to $12.4 million during the first quarter of 2024, compared to $11.4 million in the first quarter of 2023[117]. Expenses and Financial Impact - Increased interest rates have significantly raised interest expenses, negatively impacting net income and cash provided by operations, as well as access to capital markets[100]. - Interest expense rose to $4.5 million in the first quarter of 2024, up from $3.7 million in the same period of 2023, primarily due to a $1.2 million increase in interest on the revolving credit agreement[118]. - The company experienced a reduction of $193,000 in building expenses related to vacant facilities, contributing to the overall increase in income[114]. Cash Flow and Financing Activities - Net cash provided by operating activities was $11.7 million during the first quarter of 2024, compared to $10.1 million in the same period of 2023, reflecting a $1.7 million increase[122]. - Net cash used in investing activities was $8.9 million in the first three months of 2024, compared to $5.4 million in the same period of 2023[122]. - The company declared and paid dividends of $10.0 million during the three-month period ended March 31, 2024, slightly up from $9.9 million in the same period of 2023[129]. - The company had $333.7 million of outstanding borrowings under its $375 million Credit Agreement as of March 31, 2024, with $41.3 million of available borrowing capacity[141]. - The company expects to finance all capital expenditures and acquisitions using internally generated funds and additional funds from its $375 million revolving credit agreement[133]. Operational Risks - The company faces risks from potential lease expirations and the inability of UHS to renew leases on hospital facilities, which could decrease future revenues[101]. - Legislative changes in the healthcare delivery system may adversely affect the operators of the company's facilities, including UHS[104]. - The nationwide shortage of clinical staff has led to increased labor costs for tenants, affecting their operational results and potentially impacting rental payments[101]. - The impact of the COVID-19 pandemic continues to pose uncertainties for the operations and financial results of the company's tenants[101]. - The company is exposed to cybersecurity threats, which could have a material adverse effect on its business and result in significant costs[104]. Financial Ratios and Metrics - The company’s total leverage ratio was 44.4% as of March 31, 2024, remaining below the covenant limit of 60%[144]. - The company’s fixed charge coverage ratio was 3.1x as of March 31, 2024, exceeding the required minimum of 1.50x[144]. - The tangible net worth was $187.8 million, down from $191.8 million on December 31, 2023[144]. - The secured leverage ratio stood at 4.0% as of March 31, 2024, compared to 4.1% on December 31, 2023, well below the 30% covenant threshold[144]. - The unencumbered leverage ratio increased to 45.2% as of March 31, 2024, from 44.2% on December 31, 2023, still under the 60% limit[144]. Mortgages and Debt - The company’s mortgages outstanding as of March 31, 2024, had a combined carrying value of approximately $32.7 million[145]. - The total outstanding mortgages as of March 31, 2024, amounted to approximately $32.7 million, down from $33.1 million on December 31, 2023[145]. - The combined fair value of the mortgages as of March 31, 2024, was approximately $30.7 million, compared to $31.2 million on December 31, 2023[145]. - The company had various mortgages secured by real property, with all being non-recourse[145]. Other Financial Information - The average effective interest rate for the revolving credit agreement was 6.96% in the first quarter of 2024, compared to 6.06% in the same quarter of 2023[118]. - The applicable margin over the adjusted term SOFR rate was 1.20% as of March 31, 2024[140]. - Off balance sheet arrangements included a cancellation of a $3.1 million letter of credit related to the Grayson Properties II construction loan as of March 31, 2024[146].

Financial Performance - For Q1 2024, net income increased to $5.3 million, or $0.38 per diluted share, compared to $4.5 million, or $0.32 per diluted share in Q1 2023, representing a 17.8% increase in net income [2]. - Funds from operations (FFO) for Q1 2024 were $12.4 million, or $0.90 per diluted share, up from $11.4 million, or $0.82 per diluted share in Q1 2023, reflecting an increase of 8.8% [4]. - Total revenues for Q1 2024 were $25.1 million, up from $23.2 million in Q1 2023, indicating an increase of 8.2% [21]. - The company declared a dividend of $0.725 per share for Q1 2024, totaling $10.0 million, which was paid on March 29, 2024 [5]. Revenue and Lease Information - Lease revenue from UHS facilities rose to $8.7 million in Q1 2024, compared to $7.8 million in Q1 2023, marking an increase of 11.3% [21]. Assets and Liabilities - Total assets decreased slightly from $596,369 million in December 2023 to $596,189 million in March 2024 [27]. - Total liabilities increased from $395,435 million to $399,731 million, reflecting a rise of approximately 1.0% [27]. - Total equity decreased from $200,934 million to $196,458 million, a decline of approximately 2.4% [27]. - Cash and cash equivalents decreased from $8,212 million to $7,697 million, a decline of about 6.3% [27]. Investments and Expenses - The company has investments in 76 properties across 21 states, focusing on healthcare and human-service related facilities [11]. - Operating expenses related to vacant properties were $185,000 in Q1 2024, significantly lower than $604,000 in Q1 2023 [9]. - Demolition expenses for a former specialty hospital in Chicago totaled approximately $1.5 million, with $1.1 million incurred in early 2023 [8]. - The Sierra Medical Plaza I, an 86,000 square foot medical office building, was substantially completed in March 2023, with an estimated total cost of $35 million [7]. Borrowings and Financial Metrics - As of March 31, 2024, the company had $333.7 million in borrowings outstanding and $41.3 million in available borrowing capacity [6]. - Line of credit borrowings increased from $326,600 million to $333,650 million, an increase of about 2.4% [27]. - Cumulative net income rose from $826,061 million to $831,361 million, an increase of about 0.6% [27]. - Investments in and advances to limited liability companies increased from $9,102 million to $14,632 million, a significant increase of approximately 60.5% [27]. - Accrued interest increased from $490 million to $1,088 million, an increase of about 121.4% [27]. - Cumulative dividends increased from $902,975 million to $912,998 million, reflecting a rise of approximately 1.1% [27].

Exhibit 99.1 UNIVERSAL HEALTH REALTY INCOME TRUST Universal Corporate Center 367 S. Gulph Road P.O. Box 61558 King of Prussia, PA 19406 (610) 265-0688 FOR IMMEDIATE RELEASE CONTACT: Charles Boyle February 27, 2024 Chief Financial Officer (610) 768-3300 UNIVERSAL HEALTH REALTY INCOME TRUST REPORTS 2023 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Consolidated Results of Operations - Three-Month Periods Ended December 31, 2023 and 2022: KING OF PRUSSIA, PA - Universal Health Realty Income Trust (NYSE:UHT) a ...