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].