Universal Health Realty me Trust(UHT) - 2025 Q1 - Quarterly Results

Q1 2025 Financial Highlights 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 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] Funds From Operations (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 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] - 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] Business Overview and Outlook 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 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][8] - 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][11] Non-GAAP Financial Measures 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] - 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] - 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] Consolidated Financial Statements (Unaudited) This section presents the unaudited consolidated financial statements, including statements of income, FFO reconciliation, and balance sheets Consolidated Statements of Income 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 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 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 |