Universal Health Realty Income Trust Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Universal Health Realty Income Trust (UHT) has filed its Q1 2024 10-Q, detailing financial performance and operational aspects, with a focus on its real estate holdings and tenant relationships.</b>

AI Summary

UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Universal Health Realty Income Trust (UHT) filed a 10-Q report for the period ending March 31, 2024. The filing covers financial activities and operational updates for the first quarter of 2024. Key entities mentioned include Universal Health Services, Inc. (UHS) and various real estate and behavioral health facilities. The report details financial instruments such as revolving credit facilities and interest rate swaps. It also references equity method investments and lease agreements, including ground leases.

Why It Matters

For investors and stakeholders tracking UNIVERSAL HEALTH REALTY INCOME TRUST, this filing contains several important signals. This 10-Q provides investors with the latest financial snapshot of UHT's real estate portfolio and its performance in the first quarter of 2024. Understanding the details of tenant relationships, financial instruments, and equity investments is crucial for assessing UHT's ongoing financial health and future prospects.

Risk Assessment

Risk Level: medium — UNIVERSAL HEALTH REALTY INCOME TRUST shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) for a publicly traded REIT, indicating ongoing disclosure requirements rather than immediate, significant positive or negative events. However, the nature of real estate and healthcare operations introduces inherent market and operational risks.

Analyst Insight

Monitor future filings for trends in rental income, occupancy rates, and the financial health of key tenants like Universal Health Services, Inc. to gauge the stability and growth of the real estate portfolio.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-08 — Filing Date (Filed as of date)
• 2023-03-31 — Prior Year Period End Date (Comparison period for financial data)
• 2022-12-31 — Previous Year End Date (Balance sheet comparison)

Key Players & Entities

• UNIVERSAL HEALTH REALTY INCOME TRUST (company) — Filer name
• UHT (company) — Ticker symbol
• 2024-03-31 (date) — Conformed period of report
• 2024-05-08 (date) — Filed as of date
• Universal Health Services, Inc. (company) — Key tenant/related entity
• Canyon Creek Behavioral Health (company) — Related entity/facility
• King of Prussia, PA (location) — Business address
• Universal Corporate Ctr (location) — Business address street

FAQ

Risk Factors

• Dependence on Key Tenants [high — financial]: The company's financial performance is significantly dependent on its principal tenant, Universal Health Services, Inc. (UHS), and its affiliates, which lease a substantial portion of its properties.
• Real Estate Market Fluctuations [medium — market]: The value and rental income generated by the company's real estate investments are subject to fluctuations in the real estate market, including changes in occupancy rates and property values.
• Healthcare Industry Conditions [medium — operational]: The performance of the company's healthcare-related properties is influenced by the operating results and financial condition of healthcare providers, particularly UHS.
• Financing and Debt Obligations [medium — financial]: The company utilizes debt financing, including revolving credit facilities, exposing it to interest rate risks and the need to manage its debt obligations effectively.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.

Key Financial Figures

• $0.01 — stered Shares of beneficial interest, $0.01 par value UHT New York Stock Exchan

Filing Documents

• uht-20240331.htm (10-Q) — 1395KB
• uht-ex31_1.htm (EX-31.1) — 11KB
• uht-ex31_2.htm (EX-31.2) — 11KB
• uht-ex32_1.htm (EX-32.1) — 7KB
• uht-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-055718.txt (&nbsp;) — 6748KB
• uht-20240331.xsd (EX-101.SCH) — 1275KB
• uht-20240331_htm.xml (XML) — 885KB

FINANCIAL INFORMATION (unaudited)

PART I. FINANCIAL INFORMATION (unaudited) Item 1.

Financial Statements

Financial Statements Condensed Consolidated Statements of Income—Three Months Ended March 31, 2024 and 2023 3 Condensed Consolidated Statements of Comprehensive Income—Three Months Ended March 31, 2024 and 2023 4 Condensed Consolidated Balance Sheets—March 31, 2024 and December 31, 2023 5 Condensed Consolidated Statements of Changes in Equity—Three Months Ended March 31, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows—Three Months Ended March 31, 2024 and 2023 7 Notes to Condensed Consolidated Financial Statements 8 through 19 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 through 30 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 through 31 Item 4.

Controls and Procedures

Controls and Procedures 31 through 32

OTHER INFORMATION

PART II. OTHER INFORMATION 33 Item 1A.

Risk Factors

Risk Factors 33 Item 5. Other Information 33 Item 6. Exhibits 33

SIGNATURES

SIGNATURES 34 This Quarterly Report on Form 10-Q is for the quarter ended March 31, 2024. In this Quarterly Report, "we," "us," "our" and the "Trust" refer to Universal Health Realty Income Trust and its subsidiaries. As disclosed in this Quarterly Report, including in Note 2 to the condensed consolidated financial statements—Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions , a wholly-owned subsidiary of UHS (UHS of Delaware, Inc.) serves as our Advisor pursuant to the terms of an annually renewable Advisory Agreement dated December 24, 1986, and as amended and restated as of January 1, 2019. The Advisory Agreement expires on December 31 of each year, however, it is renewable by us, subject to a determination by our Trustees who are unaffiliated with UHS, that the Advisor's performance has been satisfactory. The Advisory Agreement was renewed for 2024 with the same terms as the Advisory Agreement in place during 2023 and 2022. Our officers are all employees of UHS through its wholly-owned subsidiary, UHS of Delaware, Inc. In addition, five of our hospital facilities are leased to wholly-owned subsidiaries of UHS, one of our hospital facilities is leased to a joint venture between a wholly-owned subsidiary of UHS and a third party, and subsidiaries of UHS are tenants of twenty-one medical/office buildings or free-standing emergency departments, that are either wholly or jointly-owned by us. Any reference to "UHS" or "UHS facilities" in this report is referring to Universal Health Services, Inc.'s subsidiaries, including UHS of Delaware, Inc. In this Quarterly Report, the term "revenues" does not include the revenues of the unconsolidated limited liability companies ("LLCs") in which we have various non-controlling equity interests ranging from 33% to 95%. As of March 31, 2024, we had investments in four jointly-owned LLCs/LPs. We currently account for our share of the income/loss from these investments by the equity met

Financi al Information

Part I. Financi al Information Item I. Financ ial Statements Universal Health Realty Income Trust Condensed Consolidated Statements of Income For the Three Months Ended March 31, 2024 and 2023 (amounts in thousands, except per share information) (unaudited) Three Months Ended March 31, 2024 2023 Revenues: Lease revenue - UHS facilities (a.) $ 8,664 $ 7,787 Lease revenue - Non-related parties 14,487 13,361 Other revenue - UHS facilities 220 231 Other revenue - Non-related parties 409 481 Interest income on financing leases - UHS facilities 1,361 1,366 25,141 23,226 Expenses: Depreciation and amortization 6,809 6,618 Advisory fees to UHS 1,338 1,302 Other operating expenses 7,531 7,521 15,678 15,441 Income before equity in income of unconsolidated limited liability companies ("LLCs") and interest expense 9,463 7,785 Equity in income of unconsolidated LLCs 384 371 Interest expense, net ( 4,547 ) ( 3,697 ) Net income $ 5,300 $ 4,459 Basic earnings per share $ 0.38 $ 0.32 Diluted earnings per share $ 0.38 $ 0.32 Weighted average number of shares outstanding - Basic 13,792 13,778 Weighted average number of shares outstanding - Diluted 13,824 13,803 (a.) Includes bonus rental on McAllen Medical Center, a UHS acute care hospital facility of $ 783 and $ 764 for the three-month periods ended March 31, 2024 and 2023, respectively. See accompanying notes to these condensed consolidated financial statements. 3 Universal Health Realty Income Trust Condensed Consolidated Statem ents of Comprehensive Income For the Three Months Ended March 31, 2024 and 2023 (amounts in thousands) (unaudited) Three Months Ended March 31, 2024 2023 Net income $ 5,300 $ 4,459 Other comprehensive gain/(loss): Unrealized derivative gain/(loss) on cash flow hedges 191 ( 1,747 ) Total other comprehensive gain/(loss

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View this 10-Q filing on SEC EDGAR